2013 Cleveland Metroparks CAFR

CLEVELAND METROPARKS

Comprehensive Annual Financial Report For the Year Ended December 31, 2013

Serving Cuyahoga County and Hinckley Township in Medina County, Ohio

Board of Park Commissioners: Bruce G. Rinker, President Debra K. Berry, Vice-President Dan T. Moore, Vice-President Brian M. Zimmerman, Chief Executive Officer David J. Kuntz, Chief Financial Officer

Cleveland Metroparks Cuyahoga County and Hinckley Township, Ohio Comprehensive Annual Financial Report For The Year Ended December 31, 2013

Prepared by: David J. Kuntz, CPA, Chief Financial Officer and the Department of Finance

Cleveland Metroparks Comprehensive Annual Financial Report For the Year Ended December 31, 2013 Table of Contents

I. Introductory Section

Page

Table of Contents .................................................................................................................................... i Transmittal Letter.................................................................................................................................. iii List of Principal Officials ........................................................................................................................x Organizational Chart ............................................................................................................................. xi GFOA Certificate of Achievement ...................................................................................................... xii

II. Financial Section Independent Auditor’s Report .................................................................................................................1 Management’s Discussion and Analysis.................................................................................................5 Basic Financial Statements: Government Wide Financial Statements: Statement of Net Position – Cleveland Metroparks .................................................................12 Statement of Financial Position – Component Unit – Cleveland Zoological Society ................................................................................................13 Statement of Activities: Cleveland Metroparks .......................................................................................................14 Component Unit – Cleveland Zoological Society ............................................................15 Fund Financial Statements: Balance Sheet - Governmental Fund .......................................................................................16 Reconciliation of Governmental Fund Balance to Net Position of Governmental Activities ............................................................................17 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Fund ................................................................................18 Reconciliation of the Changes in Fund Balance of Governmental Fund to the Statement of Activities ..........................................................19 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Basis) and Actual: General Fund ....................................................................................................................20 Statement of Fiduciary Assets and Liabilities Agency Fund ........................................................................................................................21 Notes to the Basic Financial Statements ..................................................................................22 -i-

Cleveland Metroparks Comprehensive Annual Financial Report For the Year Ended December 31, 2013 Table of Contents

Individual Fund Statement and Schedule: Individual Statement - Fiduciary Fund: Fund Description ......................................................................................................................55 Statement of Changes in Assets and Liabilities - Agency Fund ................................................................................................55 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Basis) and Actual: General Fund ............................................................................................................................57 III. Statistical Section Statistical Section Table of Contents ............................................................................................. S1 Net Position by Component – Last Ten Years .............................................................................. S2 Changes in Net Position – Last Ten Years .................................................................................... S4 Fund Balance, Governmental Fund – Last Ten Years ................................................................... S6 Changes in Fund Balance, Governmental Fund – Last Ten Years ............................................... .S8 Assessed Valuation and Estimated Actual Values of Taxable Property – Last Ten Years ......... S10 Property Tax Rates – Direct and Overlapping Governments – Last Seven Years ...................... S12 Property Tax Levies and Collections – Last Ten Years .............................................................. S18 Principal Real Property Taxpayers – 2013 and 2004 .................................................................. S20 Demographic and Economic Statistics ....................................................................................... S21 Principal Employers – 2013 and 2004 ......................................................................................... S23 Full-Time Equivalent Metroparks Employees by Division – Last Ten Years ............................ S24 Operating Indicators – Last Ten Years ........................................................................................ S26 Capital Assets Statistics by Function – Last Ten Years ............................................................. S28

- ii -

June 27, 2014 To the Citizens of Cuyahoga County and Hinckley Township of Medina County Honorable Judge Anthony J. Russo Bruce G. Rinker, Board of Park Commissioners, President Debra K. Berry, Board of Park Commissioners, Vice-President Dan T. Moore, Board of Park Commissioners, Vice-President

Formal Letter of Transmittal We are pleased to submit the Cleveland Metroparks’ (the Metroparks) Comprehensive Annual Financial Report (CAFR) for the year ending December 31, 2013. This report conforms to Generally Accepted Accounting Principles (GAAP) and provides full and complete disclosure of the financial position and operations of Cleveland Metroparks for the year ended December 31, 2013. The accuracy of the data and the completeness and fairness of the presentation, including all disclosures, are the responsibility of Cleveland Metroparks management. The accuracy and completeness of this data is based on a comprehensive framework of internal controls that are established for this purpose. Because the cost of internal control should not exceed the anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. To the best of our knowledge and beliefs, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position of the entity as a whole and the results of operations of the various operations of the Cleveland Metroparks. All disclosures necessary to enable the reader to gain an understanding of the Cleveland Metroparks financial activities have been included.

Ohio law requires that public offices reporting pursuant to Generally Accepted Accounting Principles (GAAP) shall file their reports with the Auditor of the State and publish notice of the availability of the financial statements within 150 days of the close of each year. The General Purpose External Financial Statements from this report were filed to fulfill that requirement for the year ended December 31, 2013.

State statutes require independent audits to be performed on all financial operations of Cleveland Metroparks. The Auditor of State, Dave Yost, has issued an unmodified (“clean”) opinion on the Cleveland Metroparks financial statements for the year ended December 31, 2013. The Independent Auditor’s Report on the basic financial statements is located at the front of the Financial Section of this report.

- iii -

This letter of transmittal is designed to complement the Management’s Discussion and Analysis (MD&A) section and should be read in conjunction with it. The MD&A provides a narrative introduction, overview, and analysis of the basic financial statements.

Reporting Entity In evaluating how to define the Cleveland Metroparks for financial reporting purposes, management has considered all agencies, departments and organizations making up Cleveland Metroparks and its potential component units consistent with Governmental Accounting Standards Board Statement No. 14, “The Financial Reporting Entity” and Governmental Accounting Standards Board Statement No. 61, “The Financial Reporting Entity: Omnibus.”

Component units are legally separate organizations for which the Metroparks are financially accountable.

The Metroparks are considered financially accountable for an organization if the Metroparks appoint a voting majority of the organization’s governing board and 1) the Metroparks are able to significantly influence the programs or services performed or provided by the organization; or 2) the Metroparks are legally entitled to or can otherwise access the organization’s resources; the Metroparks are legally obligated or has otherwise assumed the responsibility to financial deficits of or provide financial support to the organization or the Metroparks are obligated for the debt of the organization. Component units may also include organizations that are fiscally dependant on the Metroparks in that the Metroparks approve the budget, the issuance of debt, or the levying of taxes, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burden on, the Metroparks.

The component unit financial statements identify the financial data of Cleveland Metroparks’ component unit, the Cleveland Zoological Society, which is reported separately to emphasize that it is legally separate from the Cleveland Metroparks.

Cleveland Zoological Society (the Zoo Society) is a nonprofit organization which operates under a Board of Trustees. The Zoo Society promotes the conservation and propagation of wildlife primarily through the support of Cleveland Metroparks. The Zoo Society will engage the community in support of Cleveland Metroparks Zoo (the Zoo) and its mission to improve the future for wildlife and will marshal the resources necessary to ensure that the Zoo remains one of the region’s preeminent destinations and ultimately one of the top five zoos in the country. Since the economic resources received by the Zoo Society are primarily for the benefit of, and are generally accessible to, the Cleveland Metroparks, the Zoo Society is presented as a component unit of the Cleveland Metroparks. The Zoo Society is included as a component unit of Cleveland Metroparks due to Cleveland Metroparks’ influence on the programs and services provided by the Zoo Society and due to the operating agreement between Cleveland Metroparks and the Zoo Society. The Cleveland Metroparks does not appoint any members of the Zoo Society’s governing board or approve the budget or debt issuance of the Zoo Society.

Cleveland Metroparks Profile Cleveland Metroparks was established on July 23, 1917, and today consists of 22,852 acres of land in 18 reservations, their connecting parkways, and Cleveland Metroparks Zoo. The Metroparks is dedicated to conservation, education and recreation. Over 100 miles of parkways provide driving pleasure and easy access to Cleveland Metroparks facilities including; picnic areas and playfields, wildlife management areas and waterfowl sanctuaries, hiking, bridle, all purpose and physical fitness trails, eight golf courses, seven outdoor education facilities, swimming, boating, fishing, tobogganing, sledding, ice skating, and cross-country skiing.

- iv -

Cleveland Metroparks is a separate political subdivision of the State of Ohio. The Metroparks is governed by a Board of Park Commissioners, composed of three citizens who serve three-year terms without compensation. Board members are appointed by the presiding Judge of the Probate Court of Cuyahoga County, The Honorable Judge Anthony J. Russo. The 2014 officers for the Board of Park Commissioners are: Bruce G. Rinker, President Debra K. Berry, Vice-President Dan T. Moore, Vice-President Cleveland Metroparks mission is to conserve natural resources and enhance people’s lives by integrating outdoor education, recreation and zoological opportunities. The majority of Cleveland Metroparks’ approximately 23,000 acres, located in 18 reservations, are dedicated to conservation. Whether to promote fishing opportunities within Cleveland Metroparks lakes or restore wetlands, natural resource management is a significant endeavor of the Metroparks.

Outdoor education is provided through seven outdoor education facilities. Outdoor education is provided through individual and group programming at all seven nature/visitor centers. In addition, Cleveland Metroparks maintains NatureTracks, a mobile education unit, which travels to area schools and locations throughout Cuyahoga County to bring nature education to children who otherwise might not experience the natural environment. Additionally, through a “Grow up Great” grant from PNC Bank, Cleveland Metroparks will continue to provide a mobile education vehicle focusing on programming for prekindergarten children including programs administered by the Cleveland Municipal School District and the Headstart program. In addition, the vehicle will travel to fairs and festivals all summer long spreading an important environmental message to families. Also, Cleveland Metroparks, in cooperation with the City of Cleveland and The Ohio State University Extension/4-H, provides outdoor recreation and education experiences for the urban youth of Cleveland through the Youth Outdoors Program.

Recreation is provided at eight golf courses, the Chalet Recreation Area, swimming at four locations, two horse stables, numerous ball fields, open play areas and hundreds of miles of trails. Washington Golf Course, part of Washington Reservation, opened in the spring of 2006. It was funded by the First Tee of Cleveland, Inc., and featuring a 9-hole golf course, a covered teaching pavilion, a 30-station driving range, putting/chipping areas and a 6,000 square foot Life Skills/Golf Center. This cooperative venture between the Cleveland Municipal School District, The City of Cleveland and the First Tee of Cleveland, Inc. is the only Audubon International Gold Certified 9-hole golf course in America. In January of 2011, through a collaborative agreement with The City of Cleveland, Cleveland Metroparks acquired Seneca Golf Course. This new opportunity provides two 18-hole golf courses within the Brecksville Reservation.

The Cleveland Zoo provides recreation, education and conservation and is recognized as one of the finest zoos in the United States, with more than 3,300 animals encompassing 183 rolling acres. The African Elephant Crossing exhibit was completed in 2011. Supported by more than a century of experience caring for elephants, African Elephant Crossing dramatically increased the indoor and outdoor space dedicated to a herd of male and female elephants in the stimulating African themed habitat. African Elephant Crossing, representing the Zoo’s largest capital project ($25 million) since The RainForest opened in 1992, attracted over 1.1 million visitors in 2013. African Elephant Crossing would not have been possible without the participation and support of the Cleveland Zoological Society, in which approximately half of the construction costs were raised.

The award winning Cleveland Metroparks Ranger Department is the law enforcement branch of Cleveland Metroparks. Cleveland Metroparks rangers are state-certified law enforcement officers who exercise full police powers in the commission of their duties. Rangers are on duty 24-hours a day, year-

-v-

round. Ranger Headquarters, located in Fairview Park, Ohio dispatches the department’s 85 officers from 15 field offices positioned throughout the Metroparks. The Ranger Department consists of several specialized units including “state certified” law enforcement K-9 officers (German Shepherds named Rocky, Logan, Gambit and Rico), a 10 member mounted equestrian unit, bicycle patrol team, detective bureau, dive team and honor guard.

Economic Condition and Outlook Cleveland Metroparks saw successful passage of a 2.7 mill levy (1.8 mill renewal with a 0.9 mill increase) in November 2013. This initiative passed with a 70 percent affirmative vote. This levy will initially provide the Park District with approximately $23 million of additional revenue per year, attributable to the new millage and updated property values in Cuyahoga County and Hinckley Township of Medina County. The levy extends for ten years (2014-2023) and will allow Cleveland Metroparks to implement prioritized initiatives articulated in Cleveland Metroparks Strategic Plan: Cleveland Metroparks 2020: The Emerald Necklace Centennial Plan and Cleveland Metroparks Zoo Strategic Long Term Plans.

Cuyahoga County, Ohio, in which 82 percent of Cleveland Metroparks acreage exists, spans a total of 1,246 square miles. According to the 2010 census, its population has decreased 8.2 percent since 2000.

However, it is still the most populous and urbanized county in the State of Ohio. In 2013, Cuyahoga County’s unemployment rate was 7.2 percent. Comparatively, the national unemployment rate was 6.7 percent and Ohio’s was 7.1 percent in 2013. Real estate values within Cuyahoga County, as they did across most of the country, decreased approximately 7.5 percent during the most recent revaluation process conducted in 2012.

Significant Initiatives Cleveland Metroparks has remained committed to supporting existing facilities and infrastructure with a balance of new initiatives. Parkway paving and bridge rehabilitation remain a priority throughout Cleveland Metroparks.

Significant land acquisitions were completed during 2013 bringing the total acres within Cleveland Metroparks reservations to 22,852 acres in 18 reservations.

On June 6, 2013, Cleveland Metroparks assumed management of the lakefront state properties which include Edgewater Park, E. 55th Street Marina, Gordon Park, Euclid Beach Park, Villa Angela and Wildwood Park. Transitional funding, in the amount of $14 million, was provided by the Ohio Department of Natural Resources to help facilitate significant capital improvements throughout all the properties. Euclid Beach Park, Villa Angela Park and Wildwood Park join Euclid Creek Reservation, while Edgewater Park, E. 55th Street Marina and Gordon Park comprise Cleveland Metroparks newest property, Lakefront Reservation. From beaches to boat ramps, fitness trails to fishing piers, Lakefront Reservation is a true gem in the “Emerald Necklace” anchoring Cleveland Metroparks’ presence on the shores of Lake Erie. The lakefront properties will undergo an estimated $17.6 million capital transformation over the next three years including $11.8 million that has been funded in the 2014 Budget.

Acacia Reservation, a new 155 acre green space oasis within the City of Lyndhurst, began the preliminary phases to convert this previous country club into an active green space for public access.

West Creek Reservation opened in the spring of 2013 and includes the Watershed Stewardship Center at West Creek, trails, picnic shelter, parkways and maintenance facility.

- vi -

The Washington Golf Course opened in the spring of 2006 providing a 9-hole golf course and learning center funded by the First Tee of Cleveland, Inc., in cooperation with the Cleveland Municipal School District and the City of Cleveland. Construction in 2008 included a covered teaching pavilion allowing for expanded instructional use and golf camps at the driving range. Youth programming continues to be a priority at this urban golf facility.

In January of 2011, through a 99-year lease with The City of Cleveland, Cleveland Metroparks acquired Seneca Golf Course. This new opportunity currently provides two 18-hole golf courses within Brecksville Reservation as it continues to undergo some significant capital improvements.

Cleveland Metroparks Zoo featured the opening of the new African Elephant Crossing exhibit in May, 2011. This collaborative initiative features a holding capacity for up to seven elephants, an African village, aviary and numerous other exhibits. This new exhibit attracted over 1.1 million visitors in 2013 and continues to be a huge success.

Financial Policies Cleveland Metroparks has 103 short and long term financial policies available for its staff on Cleveland Metroparks intranet and available to any citizen who request the same through the Department of Finance.

The extensive policies address areas such as short and long-range planning, investments, budgeting, revenue, expenditures, payroll, capital assets, and auditing. A brief description of each follows: Short and Long Range Planning In conjunction with the departmental goals and objectives, short and long term operating and capital allocations are determined utilizing a financial forecast. This forecast ensures funds are adequately available through the ten year levy cycle. Further, the annual spending plan details monthly revenue and expenditure planning throughout the budget year.

Investments The investment policy strives to maximize liquidity, safety and return. In accordance with investments available under Ohio Revised Code, the Chief Financial Officer shall exercise a standard of prudence and diversify investment instruments to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual institutions or maturities. A report of all investments is submitted to the Board of Park Commissioners monthly.

Budgeting The budget policies incorporate an extensive process in which all division managers are involved.

Cleveland Metroparks adopts a temporary budget, representing 24 percent of the prior year’s budget, until the final budget is approved by the end of the first quarter. Financial reports are generated monthly and monitoring is done by division supervisors, chiefs, the Chief Executive Officer and the Chief Financial Officer. Budget adjustments can be accomplished within the object level without board action and between object accounts with board action.

Revenue Thirty-seven revenue locations include: eight golf courses, Cleveland Metroparks Zoo, The Chalet, Nature Shops and seven nature centers. The locations deposit revenues directly and prepare summary reports weekly. Weekly revenue reports are then sent to accounting where they are entered into the accounting system and ultimately reconciled to the monthly bank statement. The Accounting Manual details specific cash collection and inventory procedures for each revenue location.

- vii -

Expenditures Cleveland Metroparks expenditures reflect the Board of Park Commissioners and staff’s commitment to serve present and future citizens with reliable conservation, education and recreation opportunities.

Expenditures are projected conservatively using an objective and analytical approach as well as certain techniques such as historical patterns, current information, and economic trends to maintain consistency, reliability, and reasonableness. Prudent expenditure planning and accountability ensures financial stability.

Payroll Maintenance of accurate and complete payroll records is crucial to the overall control of expenditures and proper reporting of payroll costs. Adopted policies in this area provide a framework by which payroll is structured to provide effective internal controls and documentation.

Capital Assets Capital Assets are tangible or intangible assets that have an initial useful life beyond five years. Capital assets include land, land improvements, buildings, site structures, exhibits, construction in progress, vehicles, machinery and equipment, and infrastructure. Capitalization limits have been established based on each of these asset classes and serve by which asset acquisitions are added to the capital asset accounts. Cleveland Metroparks depreciates in accordance with the requirements of the Governmental Accounting Standards Board’s, Statement 34.

Compliance Cleveland Metroparks’ operational compliance function ensures financial integrity, the safeguarding of assets and adherence to established policies and procedures. Procedural reviews are performed throughout the year and include areas such as cash handling, inventory control, capital assets and payroll.

Awards and Achievements The Government Finance Officers Association of the United States and Canada (GFOA) has presented an award of Distinguished Budget Presentation to Cleveland Metroparks for its annual budget for 21 consecutive fiscal years beginning January 1, 1993 through January 1, 2013. To receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communication device. The award is valid for a period of one year only.

The Cleveland Metroparks proudly received a Certificate of Achievement for Excellence in Financial Reporting year ended December 31, 2012, its very first submission. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.

In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to the program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA.

- viii -

CLEVELAND METROPARKS LIST OF PRINCIPAL OFFICIALS DECEMBER 31, 2013

Senior Probate Court Judge .................................................................................. Anthony J. Russo

Board of Park Commissioners ................................................................ Bruce T. Rinker, President Debra K. Berry, Vice President Dan T. Moore, Vice President

Chief Executive Officer ................................................................................. Brian M. Zimmerman Chief Financial Officer .................................................................................... David J. Kuntz, CPA

-x-

ORGANIZATIONAL CHART

Citizens of Cuyahoga County and Hinckley Township in Medina County Senior Probate Judge Board of Park Commissioners Chief Financial Officer

Chief Executive Officer Chief Legal and Ethics Director of Law Officer

Information Systems

Golf

Accounting

Park Operations Purchasing Cleveland Metroparks Zoo

Rangers

Marketing

Human Resources Planning, Design & Natural Resources

- xi -

- xii -

INDEPENDENT AUDITOR’S REPORT Cleveland Metropolitan Park District Cuyahoga County 4101 Fulton Parkway Cleveland, Ohio 44144 To the Board of Park Commissioners: Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, the major fund, and the aggregate remaining fund information of the Cleveland Metropolitan Park District, Cuyahoga County, Ohio (the District), as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for preparing and fairly presenting these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes designing, implementing, and maintaining internal control relevant to preparing and fairly presenting financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to opine on these financial statements based on our audit. We did not audit the financial statements of the Cleveland Zoological Society, which represents all of the assets, net assets and revenues of the discretely presented component unit. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amount included for the District, is based solely on the report of other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States’ Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement.

An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the District's internal control. Accordingly, we express no opinion. An audit also includes evaluating the appropriateness of management’s accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation.

We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinions.

Lausche Building, 615 Superior Ave., NW, Twelfth Floor, Cleveland, Ohio 44113‐1801 Phone: 216‐787‐3665 or 800‐626‐2297 Fax: 216‐787‐3361 www.ohioauditor.gov

1

Cleveland Metropolitan Park District Cuyahoga County Independent Auditor’s Report Page 2 Opinions In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the discretely presented component unit, the major fund, and the aggregate remaining fund information of the Cleveland Metropolitan Park District, Cuyahoga County, Ohio, as of December 31, 2013, and the respective changes in financial position, thereof and the budgetary comparison for the General Fund thereof for the year then ended in accordance with the accounting principles generally accepted in the United States of America.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require this presentation to include Management’s discussion and analysis, listed in the table of contents, to supplement the basic financial statements. Although this information is not part of the basic financial statements, the Governmental Accounting Standards Board considers it essential for placing the basic financial statements in an appropriate operational, economic, or historical context. We applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, consisting of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, to the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not opine or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to opine or provide any other assurance.

Supplementary and Other Information Our audit was conducted to opine on the District’s basic financial statements taken as a whole.

The introductory section, the financial section’s individual fund statement and schedule, and the statistical section information present additional analysis and are not a required part of the basic financial statements.

The statement and schedule are management’s responsibility, and derive from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. We subjected this information to the auditing procedures we applied to the basic financial statements. We also applied certain additional procedures, including comparing and reconciling this information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves in accordance with auditing standards generally accepted in the United States of America. In our opinion, this information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

We did not subject the introductory section and statistical section information to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or any other assurance on them.

2

Cleveland Metropolitan Park District Cuyahoga County Independent Auditor’s Report Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2014, on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report describes the scope of our internal control testing over financial reporting and compliance, and the results of that testing, and does not opine on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Dave Yost Auditor of State Columbus, Ohio June 27, 2014

3

(This Page Intentionally Left Blank)

-4-

Cleveland Metroparks Management’s Discussion and Analysis For the Year Ended December 31, 2013 Unaudited

The discussion and analysis of Cleveland Metroparks (the Metroparks) financial performance provides an overall review of the Metroparks’ financial activities for the year ended December 31, 2013. The intent of this discussion and analysis is to look at the Metroparks’ financial performance as a whole; readers should also review the basic financial statements and notes to enhance their understanding of the Metroparks’ financial performance.

Financial Highlight Key financial highlights for 2013 are as follows: 

In total, net position increased approximately $80.0 million from 2012.



Capital Grants and Contributions increased $45.9 million due to the recognition of all of the acquired lakefront assets and Grants and Entitlements increased $16.8 million due primarily to the $14 million received from the State of Ohio as lakefront transition funds.



Property taxes accounted for 28.85 percent of total revenue in 2013 and is the largest general revenue source. In the fall of 2013, voters approved a new ten-year levy, with collection beginning in 2014.



The Metroparks received transitional funding in the amount of $14 million from the Ohio Department of Natural Resources to help facilitate significant capital improvements throughout all the lakefront properties.

Using this Annual Financial Report This annual report consists of a series of financial statements and notes to those statements. These statements are prepared and organized so the reader can understand the Metroparks as a financial whole or as an entire operating entity. The statements then proceed to provide an increasingly detailed look at our specific financial conditions.

The Statement of Net Position and Statement of Activities provide information about the activities of the whole Metroparks, presenting both an aggregate view of the Metroparks’ finances and a longer-term view of those assets. The Statement of Activities shows changes to net position related to each department of the Metroparks. Fund financial statements tell how services were financed in the short-term as well as what dollars remain for future spending.

Reporting on the Metroparks as a Whole Statement of Net Position and the Statement of Activities The Statement of Net Position and Statement of Activities include all assets and liabilities and deferred inflows of resources, using the accrual basis of accounting similar to the accounting method used by the private sector. The basis for this accounting takes into account all of the current year’s revenues and expenses regardless of when the cash was received or paid.

-5-

Cleveland Metroparks Management’s Discussion and Analysis For the Year Ended December 31, 2013 Unaudited

These two statements report the Metroparks’ net position and the change in net position. The change in net position is important because it tells the reader whether, for the Metroparks as a whole, the financial position of the Metroparks has improved or diminished. However, in evaluating the overall position of the Metroparks, non-financial information such as changes in the Metroparks’ tax base and the condition of the Metroparks’ capital assets will also need to be evaluated.

In the Statement of Net Position and the Statement of Activities, the Metroparks’ activities are divided into two types of activities: 

Governmental Activities – All of the Metroparks’ services are reported here, including zoo operations, park operations, golf course, ranger department and administration.



Component Unit – The Metroparks includes the financial data of Cleveland Zoological Society (the Zoo Society). The Zoo Society is a nonprofit organization which operates under a Board of Trustees. The Zoo Society promotes the conservation and propagation of wildlife – particularly endangered species – primarily through the support of the Metroparks. The Zoo Society will engage the community in support of the Cleveland Zoo (the Zoo) and in its mission to improve the future for wildlife and will marshal the resources necessary to ensure that the Zoo remains one of the region’s preeminent destinations and ultimately one of the top five Zoos in the country. Since the economic resources received by the Zoo Society are almost entirely for the benefit of and accessible to the Metroparks, the Zoo Society is presented as a component unit of the Metroparks. The Cleveland Zoological Society is included as a component unit of the Metroparks due to the Metroparks’ influence on the programs and services provided by Cleveland Zoological Society and due to the operating agreement between the Cleveland Metroparks and Cleveland Zoological Society (Note 16).

The Metroparks does not appoint any of the members of Cleveland Zoological Society’s governing board or approve the budget or debt issuance of Cleveland Zoological Society.

Reporting on the Metroparks Most Significant Fund Governmental Fund The presentation for the Metroparks’ primary fund, the general fund, focuses on how resources flow into and out of it and the balance that is left at year-end and available for spending in future periods. The general fund is reported using modified accrual accounting which measures cash and all other financial assets that are expected to be readily converted to cash. The governmental fund statements provide a detailed short-term view of the Metroparks’ general operations and the basic services it provides.

Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future on services provided to our users. The relationship (or difference) between governmental activities (reported on the Statement of Net Position and the Statement of Activities) and the general fund is reconciled in the financial statements.

-6-

Cleveland Metroparks Management’s Discussion and Analysis For the Year Ended December 31, 2013 Unaudited

The Cleveland Metroparks as a Whole Recall that the Statement of Net Position looks at the Metroparks as a whole. Table 1 provides a summary of the Metroparks’ net position for 2013 compared to 2012.

Table 1 Net Position 2013

2012

Change

$104,209,206 117,453,165 207,812,188

$69,189,436 94,235,513 163,946,650

$35,019,770 23,217,652 43,865,538

429,474,559

327,371,599

102,102,960

5,269,197

5,407,764

(138,567)

1,260,863 4,816,486

1,777,028 4,792,232

(516,165) 24,254

Total Liabilities

11,346,546

11,977,024

(630,478)

Deferred Inflows of Resources Property Taxes

66,166,709

43,465,281

22,701,428

324,708,556 27,252,748

257,396,221 14,533,073

67,312,335 12,719,675

$351,961,304

$271,929,294

$80,032,010

Assets Current and Other Assets Nondepreciable Capital Assets Depreciable Capital Assets Total Assets Liabilities Current and Other Liabilities Long-Term Liabilities: Due Within One Year Due in More than One Year

Net Position Investment in Capital Assets Unrestricted Net Position

The increase in 2013 net position is due to increases in cash and cash equivalents, property taxes receivable and capital assets. On the Statement of Net Position, cash increased due to the additional monies received from the State's transportation and public safety budget to pay for the lakefront transition. Property taxes receivable increased due to the successful passage of a 2.7 mill levy (1.8 mill renewal with a 0.9 mill increase) in November 2013. Capital assets increased significantly due to the capitalization of all the land, buildings and miscellaneous assets from the lakefront parks.

Liabilities decreased modestly from 2012 to 2013. The largest decrease was in retainage payable, as several large capital projects were completed in 2013 and the retainage was paid.

The significant increase in capital assets impacted net position, as is evident in the large increase to investment in capital assets. Unrestricted net position increased primarily due to the $14 million in transitional funding received from the State of Ohio in 2013.

-7-

Cleveland Metroparks Management’s Discussion and Analysis For the Year Ended December 31, 2013 Unaudited

Table 2 shows the changes in net position for the years ended December 31, 2013 and 2012.

Table 2 Changes in Net Position 2013 Revenues Program Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions

2012

Change

$17,099,080 2,938,530 62,787,901

$15,945,741 1,903,730 16,852,984

$1,153,339 1,034,800 45,934,917

82,825,511

34,702,455

48,123,056

42,984,629

37,933,471

5,051,158

21,984,635 54,748 1,126,539

5,169,784 47,154 510,953

16,814,851 7,594 615,586

66,150,551

43,661,362

22,489,189

148,976,062

78,363,817

70,612,245

Program Expenses Park Operations Zoo Operations Golf Course Ranger Department Administration

22,278,154 19,968,460 6,080,577 7,858,976 12,757,885

24,777,188 21,862,586 6,273,862 7,406,040 11,347,881

(2,499,034) (1,894,126) (193,285) 452,936 1,410,004

Total Program Expenses

68,944,052

71,667,557

(2,723,505)

Change in Net Position

80,032,010

6,696,260

73,335,750

271,929,294

265,233,034

6,696,260

$351,961,304

$271,929,294

$80,032,010

Total Program Revenues General Revenues Property Taxes Grants and Entitlements not Restricted to Specific Programs Investment Earnings Other Total General Revenues Total Revenues

Net Position, Beginning of Year Net Position, End of Year

Several revenue sources fund the Metroparks. Capital grants and contributions is the largest contributor in 2013 and accounted for 42.15 percent of total revenue, compared to 21.51 percent in 2012. The increase is due to land and building donations for the lakefront properties. Property tax is the next biggest contributor and accounted for 28.85 percent of total revenue in 2013, compared to 48.41 in 2012.

Additionally, Grants and Entitlements increased $16.8 million, primarily due to receiving the $14 million in lakefront transition funds.

The Metroparks has maintained a philosophy to strive for self-sufficiency in the areas dedicated to recreation such as the golf courses, the Zoo, the Chalet and Aquatics. In 2013, charges for services increased due to increases in zoo receipts because of the Dinosaurs! attraction. As a result of this, charges for services in 2013 accounted for $17,099,080 which is 11.48 percent of total revenue, compared to $15,945,741 or 20.35 percent of total revenue in 2012.

-8-

Cleveland Metroparks Management’s Discussion and Analysis For the Year Ended December 31, 2013 Unaudited

Several administrative realignments occurred within the five different program categories in 2013 which resulted in the program expense changes noted within Table 2. The Cleveland Metroparks 2005 marketing and advertising expenses were consolidated into Cleveland Metroparks administration marketing department in order to obtain greater efficiencies and effectiveness of operations.

Additionally, five different nature shops, previously included as park operations expense, were realigned into an administration program expense in 2013. Overall, 2013 Total Program Expenses decreased $2.7 million from that of 2012.

The Metroparks Fund Information about the Metroparks’ governmental fund begins on page 16. This fund is accounted for using the modified accrual basis of accounting. The Metroparks had governmental revenues of $91,104,377 and expenditures of $76,796,402. Revenue increases are primarily due to an increase in property taxes and intergovernmental revenues. Expenditures increased primarily due to the costs for the West Creek Reservation opening and the operation of all the lakefront parks. As of the end of the current year, the Metroparks’ general fund reported an ending fund balance of $26,129,768. The Nonspendable fund balance of $1,365,611 includes prepaids and inventory. Fund balance in the amount of $1,212,629 is committed to capital improvements. The assigned fund balance includes $2,338,839 for purchases on order. Unassigned fund balances of $21,212,689 represents all balances not previously classified.

Budgeting Highlights The Metroparks’ budget is prepared according to Ohio law and is based on accounting for certain transactions on a basis of cash receipts, disbursements, and encumbrances.

During the course of 2013, the Metroparks amended its general fund budget. All recommendations for a budget change come from the Metroparks’ Chief Financial Officer to the Board of Park Commissioners for resolution enactment on the change. The general fund is monitored closely looking for possible revenue shortfalls or over spending by individual departments.

Original budgeted revenues for the general fund were $75,523,692; final budget amount was $90,801,015 and the actual revenue was $89,676,288. The major factor contributing to the decrease in actual revenue was that many expenditures related to reimbursable capital grants did not occur due to delays in the capital projects. Original budgeted expenditures were less than the final budget by $4,736,833, primarily due to additional expenses budgeted for capital projects. As revenue estimates were revised, expenditure estimates followed. Actual expenditures were $9,204,772 less than the final budget estimate due to a concerted effort to manage expenditures.

-9-

Cleveland Metroparks Management’s Discussion and Analysis For the Year Ended December 31, 2013 Unaudited

Capital Assets Table 3 Capital Assets at December 31 (Net of Depreciation) 2013

2012

Change

Land Land Improvement Construction in Progress Site Structures Exhibits Buildings Machinery and Equipment Vehicles Infrastructure: Bridges Fords Dams Tunnels Utilities Roads All Purpose Trails Golf Course Cart Paths Other Paved Areas

$106,720,174 6,819,111 3,913,880 8,118,856 6,946,671 125,923,807 6,647,634 2,236,333

$71,845,586 6,819,111 15,570,816 1,446,734 7,137,936 97,206,067 5,041,115 2,241,900

$34,874,588 0 (11,656,936) 6,672,122 (191,265) 28,717,740 1,606,519 (5,567)

25,372,655 1,554,818 92,199 730,215 826,387 16,217,236 8,603,432 642,394 3,899,551

22,658,403 1,617,329 61,398 751,156 238,346 13,533,060 7,708,783 621,893 3,682,530

2,714,252 (62,511) 30,801 (20,941) 588,041 2,684,176 894,649 20,501 217,021

Totals

$325,265,353

$258,182,163

$67,083,190

The increase in capital assets of $67,083,190 in 2013 was primarily attributable to increases in the Nondepreciable Capital Assets and Buildings because of the acquisition of the lakefront properties.

Construction in progress decreased due to the completion of the West Creek Reservation project in 2013.

See Note 9 of the basic financial statements for additional information on capital assets.

Current Financial Related Activities The Metroparks has committed itself to financial excellence and has a history of doing just that. The Metroparks has received the Government Finance Officers Association’s Distinguished Budget Presentation Award for 21 consecutive fiscal years beginning January 1, 1993 through December 31, 2013.

Additionally, Cleveland Metroparks received the Government Finance Officers Association’s Certificate of Achievement for Excellence in Financial Reporting for its first ever Comprehensive Annual Financial Report for the fiscal year ended December 31, 2012.

- 10 -

Cleveland Metroparks Management’s Discussion and Analysis For the Year Ended December 31, 2013 Unaudited

The mission of the Cleveland Metroparks is to conserve significant natural resources and enhance people's lives by providing safe, high-quality outdoor education, recreation, and zoological opportunities.

Further, The Metroparks is committed to create compelling experiences that connect people with wildlife.

Annually the Metroparks makes available financial reports and budget documents. The Metroparks publishes a variety of informative documents related to the Metroparks and the Zoo. There is also information available at both the Metroparks and Zoo web sites.

Contacting the Metroparks Chief Financial Officer This financial report is designed to provide the citizenry with the general overview of the Metroparks finances and show the Metroparks’ accountability for all money it receives, spends or invests. If you have any questions about this report or need financial information, please contact Chief Financial Officer David J. Kuntz, CPA, Cleveland Metroparks, 4101 Fulton Parkway, Cleveland, Ohio 44144, or by email at djk2@clevelandmetroparks.com.

- 11 -

Cleveland Metroparks Statement of Net Position December 31, 2013

Governmental Activities Assets Cash and Cash Equivalents Cash and Cash Equivalents in Segregated Accounts Cash and Cash Equivalents with Fiscal Agents Materials and Supplies Inventory Accrued Interest Receivable Accounts Receivable Due from Component Unit Intergovernmental Receivable Prepaid Items Taxes Receivable Nondepreciable Capital Assets Depreciable Capital Assets, Net

$28,585,777 12,528 103,770 1,087,626 3,446 35,166 1,064,559 3,576,045 277,985 69,462,304 117,453,165 207,812,188

Total Assets

429,474,559

Liabilities Accounts Payable Contracts Payable Accrued Wages Matured Compensated Absences Payable Retainage Payable Insurance Claims Payable Intergovernmental Payable Long-Term Liabilities: Due Within One Year Due In More Than One Year

1,752,344 453,027 1,595,785 60,471 103,770 301,000 1,002,800 1,260,863 4,816,486

Total Liabilities

11,346,546

Deferred Inflows of Resources Property Taxes

66,166,709

Net Position Investment in Capital Assets Unrestricted

324,708,556 27,252,748

Total Net Position

$351,961,304

See accompanying notes to the basic financial statements

- 12 -

Cleveland Metroparks Statement of Financial Position Component Unit - Cleveland Zoological Society December 31, 2013

Current Assets Cash and Cash Equivalents Charitable Gift Annuities Pledges Receivable, Net Prepaid Expenses and Other Assets

$1,774,368 167,397 788,007 74,367

Total Current Assets

2,804,139

Office Equipment, Software, and Network Resources, at Cost Less: Accumulated Depreciation

Other Long-Term Assets Property Held for Resale Pledges Receivable, Net Marketable Securities Beneficial Interest in Perpetual Trusts

737,851 (531,741) 206,110

110,000 163,142 9,842,891 592,116

Total Long-Term Assets

10,914,259

Total Assets

$13,718,398

Current Liabilities Accounts Payable and Accrued Expenses Funds Held for Others Amounts Due to Cleveland Metroparks

86,524 56,700 1,064,559

Total Current Liabilities

1,207,783

Long-Term Liability Liability Under Split-Interest Agreements

94,752

Total Liabilities

1,302,535

Net Assets Unrestricted Undesignated Board-Designated

1,397,159 8,487,122

Total Unrestricted Temporarily Restricted Permanently Restricted

9,884,281 1,892,466 639,116

Total Net Assets

12,415,863

Total Liabilities and Net Assets

$13,718,398

See accompanying notes to the basic financial statements - 13 -

Cleveland Metroparks Statement of Activities For the Year Ended December 31, 2013

Net (Expense) Revenue and Change in Net Position

Program Revenues

Expenses

Charges for Services

Operating Grants and Contributions

Capital Grants and Contributions

Governmental Activities

Governmental Activities Park Operations Zoo Operations Golf Course Ranger Department Administration

$22,278,154 19,968,460 6,080,577 7,858,976 12,757,885

$1,882,538 9,091,643 6,055,428 69,471 0

$363,907 1,264,170 0 20,097 1,290,356

$62,518,526 0 0 0 269,375

$42,486,817 (9,612,647) (25,149) (7,769,408) (11,198,154)

Total

$68,944,052

$17,099,080

$2,938,530

$62,787,901

13,881,459

General Revenues Property Taxes Grants and Entitlements not Restricted to Specific Programs Investment Earnings Other

42,984,629 21,984,635 54,748 1,126,539

Total General Revenues

66,150,551

Change in Net Position

80,032,010

Net Position Beginning of Year

271,929,294

Net Position End of Year

$351,961,304

See accompanying notes to the basic financial statements

- 14 -

Cleveland Metroparks Statement of Activities Component Unit - Cleveland Zoological Society For the Year Ended December 31, 2013

Unrestricted Support, Revenues and Gains Membership Individuals, Corporations, and Foundations Capital Campaign

$2,785,484 1,321,462 0

Temporarily Restricted

Permanently Restricted

$0 696,772 1,494,924

$0 0 0

$2,785,484 2,018,234 1,494,924

0 0 0 80,581 0

6,298,642 1,615,113 1,268,637 73,968 0

Investment Income Special Events Change in Value of Split-Interest Agreements Net Assets Released from Restrictions

4,106,946 1,612,763 1,268,637 (6,613) 1,517,197

Total Support, Revenues and Gains

8,498,930

676,849

80,581

9,256,360

Expenses Program Services: Cleveland Metroparks Membership Zoo Education and Workforce Development Conservation Projects Special Projects and Other Capital Projects

1,987,071 886,459 314,329 344,097 507,535 750,000

0 0 0 0 0 0

0 0 0 0 0 0

1,987,071 886,459 314,329 344,097 507,535 750,000

Total Program Services

4,789,491

0

0

4,789,491

436,421

0

0

436,421

629,929 33,085 83,427 126,220 819,487

0 0 0 0 0

0 0 0 0 0

629,929 33,085 83,427 126,220 819,487

1,692,148

0

0

1,692,148

Total Supporting Services

2,128,569

0

0

2,128,569

Total Expenses

6,918,060

0

0

6,918,060

Change in Net Assets

1,580,870

676,849

80,581

2,338,300

Net Assets - Beginning of Year

8,303,411

1,215,617

558,535

10,077,563

$9,884,281

$1,892,466

$639,116

$12,415,863

Supporting Services: Management and General Fund Raising: Development Capital Campaign Adopt an Animal Publications Special Events Total Fund Rasing

Net Assets - End of Year See accompanying notes to the basic financial statements

- 15 -

2,191,696 2,350 0 0 (1,517,197)

Total

Cleveland Metroparks Balance Sheet Governmental Fund December 31, 2013

General Fund Assets Cash and Cash Equivalents Cash and Cash Equivalents in Segregated Accounts Cash and Cash Equivalents with Fiscal Agents Materials and Supplies Inventory Accrued Interest Receivable Accounts Receivable Due from Component Unit Intergovernmental Receivable Prepaid Items Taxes Receivable Total Assets

$28,585,777 12,528 103,770 1,087,626 3,446 35,166 1,064,559 3,576,045 277,985 69,462,304 $104,209,206

Liabilities Accounts Payable Contracts Payable Accrued Wages Matured Compensated Absences Payable Retainage Payable Insurance Claims Payable Intergovernmental Payable

$1,752,344 453,027 1,595,785 60,471 103,770 301,000 1,002,800

Total Liabilities

5,269,197

Deferred Inflows of Resources Property Taxes Unavailable Revenue

66,166,709 6,643,532

Total Deferred Inflows of Resources

72,810,241

Fund Balance Nonspendable Committed Assigned Unassigned

1,365,611 1,212,629 2,338,839 21,212,689

Total Fund Balance

26,129,768

Total Liabilities, Deferred Inflows of Resources and Fund Balance See accompanying notes to the basic financial statements

- 16 -

$104,209,206

Cleveland Metroparks Reconciliation of Governmental Fund Balance to Net Position of Governmental Activities December 31, 2013

Total Governmental Fund Balance

$26,129,768

Amounts reported for governmental activities in the statement of net position are different because Capital assets used in governmental activities are not financial resources and therefore are not reported in the fund.

325,265,353

Other long-term assets are not available to pay for current period expenditures and therefore are reported as unavailable revenues in the fund.

Delinquent Property Taxes Intergovernmental Golf Receipts Zoo Receipts Park Receipts Other

3,295,595 3,312,771 18,163 516 4,202 12,285

Total

6,643,532

Long-term liabilities are not due and payable in the current period and therefore are not reported in the fund.

Compensated Absences Claims Payable Total

(5,379,575) (697,774) (6,077,349)

Net Position of Governmental Activities

$351,961,304

See accompanying notes to the basic financial statements

- 17 -

Cleveland Metroparks Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund For the Year Ended December 31, 2013

General Fund Revenues Property Taxes Intergovernmental Donations and Sponsors Interest Golf Receipts Zoo Receipts Park Receipts Damages and Fines Other

$43,774,898 26,552,895 2,531,383 54,748 6,037,265 9,091,127 1,878,336 69,471 1,114,254

Total Revenues

91,104,377

Expenditures Current: Park Operations Zoo Operations Golf Course Ranger Department Administration Capital Outlay

20,425,404 19,112,247 6,017,368 7,689,063 12,906,329 10,645,991

Total Expenditures

76,796,402

Net Change in Fund Balance

14,307,975

Fund Balance Beginning of Year

11,821,793

Fund Balance End of Year

$26,129,768

See accompanying notes to the basic financial statements

- 18 -

Cleveland Metroparks Reconciliation of the Changes in Fund Balance of Governmental Fund to the Statement of Activities For the Year Ended December 31, 2013

Net Change in Fund Balances - Total Governmental Fund

$14,307,975

Amounts reported for governmental activities in the statement of activities are different because Governmental funds report capital outlays as expenditures.

However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital Asset Additions: Capital Outlays Capital Contributions Current Year Depreciation

15,752,603 59,722,751 (8,352,362)

Total

67,122,992

Governmental funds only report the disposal of assets to the extent proceeds are received from the sale. In the statement of activities, a loss is reported for each disposal.

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the fund.

Delinquent Property Taxes Intergovernmental Golf Receipts Zoo Receipts Park Receipts Other

(39,802)

(790,269) (1,095,963) 18,163 516 4,202 12,285

Total

(1,851,066)

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental fund.

Compensated Absences Retrospective Workers Compensation Total

326,587 165,324 491,911

Change in Net Position

$80,032,010

See accompanying notes to the basic financial statements

- 19 -

Cleveland Metroparks Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Basis) and Actual General Fund For the Year Ended December 31, 2013

Budgeted Amounts Original

Variance with Final Budget Positive (Negative)

Final

Actual

$48,728,408 14,033,462 1,738,593 31,187 3,523,491 5,306,340 1,096,477 41,537 1,024,197

$43,066,840 26,590,201 3,120,600 45,000 6,362,703 8,861,086 1,812,756 87,190 854,639

$43,774,898 25,089,075 2,531,383 53,425 6,035,881 9,089,972 1,878,309 71,154 1,152,191

$708,058 (1,501,126) (589,217) 8,425 (326,822) 228,886 65,553 (16,036) 297,552

Total Revenues

75,523,692

90,801,015

89,676,288

(1,124,727)

Expenditures Current: Park Operations Zoo Operations Golf Course Ranger Department Administration Capital Outlay

20,728,514 21,405,924 6,789,445 7,828,722 15,458,715 13,969,288

22,149,952 21,412,393 6,830,768 8,193,177 13,765,405 18,565,746

20,110,809 19,276,009 5,893,650 7,693,617 14,627,815 14,110,769

2,039,143 2,136,384 937,118 499,560 (862,410) 4,454,977

Total Expenditures

86,180,608

90,917,441

81,712,669

9,204,772

7,963,619

8,080,045

Revenues Property Taxes Intergovernmental Donations and Sponsors Interest Golf Receipts Zoo Receipts Park Receipts Damages and Fines Other

Net Change in Fund Balance Fund Balance Beginning of Year Prior Year Encumbrances Appropriated Fund Balance End of Year

(10,656,916)

(116,426)

10,170,152

10,170,152

10,170,152

0

3,676,359

3,676,359

3,676,359

0

$3,189,595

$13,730,085

$21,810,130

$8,080,045

See accompanying notes to the basic financial statements

- 20 -

Cleveland Metroparks Statement of Fiduciary Assets and Liabilities Agency Fund December 31, 2013

Assets Cash and Cash Equivalents

$73,823

Liabilities Deposits Held and Due to Others

$73,823

See accompanying notes to the basic financial statements

- 21 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Note 1 - Reporting Entity and Basis of Presentation Cleveland Metroparks (the Metroparks) is a body politic established on July 23, 1917, by the Cuyahoga County Probate Court, under the authority of Section 1545.01, Ohio Revised Code.

The Metroparks’ governing body is a three member Board of Park Commissioners (the Commissioners), who are appointed to three year terms by the Cuyahoga County Probate Court. The Metroparks is classified as a related organization of Cuyahoga County.

The Metroparks is dedicated to the conservation of natural resources and wildlife, while providing various recreational facilities and services which are to be enjoyed by the public. These activities are directly controlled by the Commissioners through the budgetary process and are included within this report.

In evaluating how to define the Metroparks for financial reporting purposes, management has considered all agencies, departments and organizations making up the Metroparks and its potential component units consistent with Governmental Accounting Standards Board Statement No. 14, “The Financial Reporting Entity” and Governmental Accounting Standard Board (GASB) Statement No. 61, “The Financial Reporting Entity: Omnibus.”

Component units are legally separate organizations for which the Metroparks is financially accountable.

The Metroparks is financially accountable for an organization if the Metroparks appoints a voting majority of the organization's governing board and (1) the Metroparks is able to significantly influence the programs or services performed or provided by the organization; or (2) the Metroparks is legally entitled to or can otherwise access the organization's resources; the Metroparks is legally obligated or has otherwise assumed the responsibility to finance deficits of or provide financial support to the organization or the Metroparks is obligated for the debt of the organization. Component units may also include organizations that are fiscally dependent on the Metroparks in that the Metroparks approves the budget, the issuance of debt, or the levying of taxes, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burden on, the Metroparks.

Discretely Presented Component Unit The component unit financial statements identify the financial data of the Metroparks’ component unit, Cleveland Zoological Society, which is reported separately to emphasize that it is legally separate from the Metroparks.

Cleveland Zoological Society Cleveland Zoological Society (the Zoo Society) is a nonprofit organization which operates under a Board of Trustees. The Zoo Society promotes the conservation and propagation of wildlife – particularly endangered species – primarily through the support of the Metroparks. The Zoo Society will engage the community in support of the Cleveland Zoo (the Zoo) and in its mission to improve the future for wildlife and will marshal the resources necessary to ensure that the Zoo remains one of the region’s preeminent destinations and ultimately one of the top five zoos in the country. Since the economic resources received by the Zoo Society are primarily for the benefit of and are generally accessible to the Metroparks, the Zoo Society is presented as a component unit of the Metroparks.

Cleveland Zoological Society is included as a component unit of the Metroparks due to the Metroparks influence on the programs and services provided by Cleveland Zoological Society and due to the operating agreement between the Metroparks and Cleveland Zoological Society (Note 17). The Metroparks does not appoint any of the members of Cleveland Zoological Society’s governing board or approve the budget or debt issuance of Cleveland Zoological Society. Financial statements can be obtained from Cleveland Zoological Society, 3900 Wildlife Way, Cleveland, Ohio 44109.

- 22 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

The Zoo Society uses a non-governmental GAAP reporting model; therefore the Zoo Society’s statement of financial position and statement of activities are reported on a separate page following the Metroparks’s statement of net position and statement of activities.

Information in the following notes to the Metroparks’ basic financial statements is applicable to the Metroparks. Information relative to the component unit for the year ended December 31, 2013 is presented in Note 16.

Note 2 - Summary of Significant Accounting Policies The financial statements of the Metroparks have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to local governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Metroparks’ accounting policies are described below.

Basis of Presentation The Metroparks’ basic financial statements consist of government-wide statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information.

Government-Wide Financial Statements The statement of net position and the statement of activities display information about the Metroparks as a whole. These statements include the financial activities of the Metroparks, except for fiduciary funds. These statements usually distinguish between those activities of the Metroparks that are governmental and those that are considered business-type. The Metroparks, however, does not have business-type activities.

The statement of net position presents the financial condition of the governmental activities of the Metroparks at year-end. The statement of activities presents a comparison between direct expenses and program revenues for each program or function of the Metroparks’ governmental activities. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operational or capital requirements of a particular program and interest earned on grants that is required to be used to support a particular program. Revenues which are not classified as program revenues are presented as general revenues of the Metroparks, with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each governmental program is selffinancing or draws from the general revenues of the Metroparks.

Fund Financial Statements During the year, the Metroparks segregates transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information at this more detailed level. The focus of governmental fund financial statements is on major funds. Each major fund is presented in a separate column. Fiduciary funds are reported by type.

Fund Accounting The Metroparks uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self balancing set of accounts. The Metroparks reports two categories of funds: governmental and fiduciary.

- 23 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Governmental Funds Governmental funds are those through which most governmental functions are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Current liabilities and deferred inflows of resources are assigned to the fund from which they will be paid. The difference between governmental fund assets and deferred outflows of resources, and liabilities and deferred inflows of resources is reported as fund balances. The following is the Metroparks’ only governmental fund: General Fund The general fund accounts for and reports all financial resources of the Metroparks. The general fund balance is available to the Metroparks for any purpose provided it is expended or transferred according to the general laws of Ohio.

Fiduciary Funds Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into four classifications: pension trust funds, investment trust funds, privatepurpose trust funds and agency funds. Trust funds are used to account for assets held by the Metroparks under a trust agreement for individuals, private organizations, or other governments and are therefore not available to support the Metroparks’ own programs. The Metroparks has no trust funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The Metroparks’ agency fund accounts for deposits held an employee flexible benefit plan.

Measurement Focus Government-Wide Financial Statements The government-wide financial statements are prepared using a flow of economic resources measurement focus. All assets and all liabilities associated with the operation of the Metroparks are included on the Statement of Net Position. The Statement of Activities presents increases (i.e., revenues) and decreases (i.e., expenses) in total net position.

Fund Financial Statements The general fund is accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. The statement of revenues, expenditures and changes in fund balance reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for the general fund.

Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements and the statement prepared for fiduciary funds are prepared using the accrual basis of accounting. The general fund uses the modified accrual basis of accounting. Differences in the accrual and modified accrual basis of accounting arise in the recognition of revenue, in the recording of deferred outflows/inflows of resources, and in the presentation of expenses versus expenditures.

Revenues - Exchange and Nonexchange Transactions Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Available means that the resources will be collected within the - 24 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

current year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current year. For the Metroparks, available means expected to be received within sixty days of year-end.

Nonexchange transactions, in which the Metroparks receives value without directly giving equal value in return, include property taxes, grants, entitlements and donations. Revenue from property taxes is recognized in the year for which the taxes are levied (See Note 7). Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the Metroparks must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the Metroparks on a reimbursement basis. On the modified accrual basis, revenue from nonexchange transactions must also be available before it can be recognized.

Under the modified accrual basis, the following revenue sources are considered to be both measurable and available at year-end: state-levied locally shared taxes, damages and fines, interest, grants and rentals.

Deferred Outflows/Inflows of Resources In addition to assets, the statements of financial position will sometimes report a separate section for deferred outflows of resources. Deferred outflows of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statements of financial position report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. For the Metroparks, deferred inflows of resources include property taxes and unavailable revenue. Property taxes represent amounts for which there is an enforceable legal claim as of December 31, 2013, but which were levied to finance year 2014 operations. These amounts have been recorded as a deferred inflow on both the government-wide statement of net position and the governmental fund financial statements. Unavailable revenue is reported only on the governmental funds balance sheet, and represents receivables which will not be collected within the available period. For the Metroparks, unavailable revenue includes delinquent property taxes and intergovernmental grants. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available.

Expenses/Expenditures On the accrual basis of accounting, expenses are recognized at the time they are incurred.

The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation and amortization, are not recognized in governmental funds.

Cash and Cash Equivalents During 2013, the Metroparks’ investments were limited to the State Treasury Asset Reserve of Ohio (STAR Ohio). STAR Ohio is an investment pool managed by the State Treasurer’s Office which allows governments within the state to pool their funds for investment purposes. STAR Ohio is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in STAR Ohio are valued at STAR Ohio’s net asset value per share which is the price the investment could be sold at December 31, 2013.

- 25 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Investment procedures are restricted by the provisions of the Ohio Revised Code. Interest revenue credited to the general fund amounted to $54,748 during 2013.

Investments with an original maturity of three months or less at the time of purchase are presented on the financial statements as cash equivalents.

The Metroparks has segregated bank accounts for monies held separately from the Metroparks’ central bank account. Cash and cash equivalents that are held separately by the Metroparks for payment of retainage to contractors upon project completion are recorded as “Cash and Cash Equivalents with Fiscal Agents”.

The City has segregated bank accounts for monies held separate from the Metroparks' central bank account. These depository accounts are presented as "Cash and Cash Equivalents in Segregated Accounts" since they are not required to be deposited into the Metropark’s treasury.

Materials and Supplies Inventory Inventories are presented at cost on a first-in, first-out basis and are expended/expensed when used.

Inventory consists of materials and supplies held for consumption.

Prepaid Items Payments made to vendors for services that will benefit periods beyond the current year, are recorded as prepaid items using the consumption method by recording a current asset for the prepaid amount at the time of purchase and reflecting the expenditure/expense in the year in which the services are consumed.

Capital Assets The Metroparks’ only capital assets are general capital assets. General capital assets are capital assets which are associated with and generally arise from governmental activities. They generally result from expenditures in the general fund. General capital assets are reported in the governmental activities column of the government-wide statement of net position but are not reported in the financial statements of the general fund.

All capital assets, except for the Metroparks’ collection of zoo animals, are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. The Metroparks was able to estimate the historical cost for the initial reporting of infrastructure by backtrending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). Donated capital assets are recorded at their fair market values as of the date received. The Metroparks capitalizes all land, construction in progress and infrastructure. The capitalization thresholds for the Metroparks’ other capital assets are as follows: Buildings Machinery and Equipment Vehicles Exhibits

$50,000 1,000 1,000 50,000

Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are not.

- 26 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

All capital assets are depreciated except for land and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Useful lives for infrastructure were estimated based on the Metroparks’ historical records of necessary improvements and replacement.

Depreciation is computed using the straight-line method over the following useful lives: Governmental Activities Estimated Lives 20 years 40 years 5 - 10 years 7 years 20 - 40 years 40 years

Description Site Structures Buildings Machinery and Equipment Vehicles Infrastructure Exhibits

The Metroparks reports infrastructure consisting of bridges, fords, dams, roads, all purpose trails, golf course cart paths, tunnels and other paved areas and infrastructure that was acquired prior to December 31, 1980.

The Metroparks’ collection of zoo animals meets the definition of a capital asset and normally should be reported in the financial statements. GASB Statement No. 34 does not require capitalization of collections that meet all of the following criteria: 1) the collection is held for reasons other than financial gain, 2) the collection is protected, kept unencumbered, cared for, and preserved, and 3) the collection is subject to an organizational policy requiring that the proceeds from sales of collection items be used to acquire other items for the collections. Because the Metroparks’ collection of zoo animals meets the above requirements, the Metroparks has not capitalized them.

Accrued Liabilities and Long-Term Obligations All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements.

Governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources are reported as obligations of the fund. However, claims and judgments and compensated absences are reported as a liability in the fund financial statements only to the extent payments come due each period upon the occurrence of employee resignations and retirements.

Compensated Absences Vacation benefits are accrued as a liability as the benefits are earned if the employees' rights to receive compensation are attributable to services already rendered and it is probable that the employer will compensate the employees for the benefits through paid time off or some other means. The Metroparks records a liability for all accumulated unused vacation time when earned for all employees with more than one year of service.

Sick leave benefits are accrued as a liability using the termination method. An accrual for earned sick leave is made to the extent that it is probable that the benefits will result in termination payments. The liability is an estimate based upon the Metroparks’ past experience of making termination payments.

- 27 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Fund Balance Fund balance is divided into five classifications based primarily on the extent to which the Metroparks is bound to observe constraints imposed upon the use of the resources in the governmental fund. The classifications are as follows: Nonspendable The nonspendable fund balance category includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. The “not in spendable form� criterion includes items that are not expected to be converted to cash.

Restricted Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions.

Committed The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action (resolution) of the Commissioners. Those committed amounts cannot be used for any other purpose unless the Commissioners remove or change the specified use by taking the same type of action (resolution) it employed to previously commit those amounts. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned Amounts in the assigned fund balance classification are intended to be used by the Metroparks for specific purposes but do not meet the criteria to be classified as restricted or committed. In the general fund, assigned amounts represent intended uses established by the Commissioners by ordinance or by State Statute. State statute authorizes the Chief Financial Officer to assign fund balance for purchases on order provided such amounts have been lawfully appropriated.

Unassigned Unassigned fund balance is the residual classification for the general fund and includes all spendable amounts not contained in the other classifications.

The Metroparks applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Net Position Net Position represents the difference between all other elements in a statement of financial position. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvement of those assets.

Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from these estimates.

- 28 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Budgetary Process The general fund is legally required to be budgeted and appropriated. The major documents prepared are the tax budget, the certificate of estimated resource and the appropriations resolution, all of which are prepared on the budgetary basis of accounting. The tax budget demonstrates a need for existing or increased tax rates. The certificate of estimated resources establishes a limit on the amount the Commissioners may appropriate. The appropriations resolution is the Commissioners’ authorization to spend resources and sets annual limits on expenditures plus encumbrances at the level of control selected by the Commissioners. The legal level of control has been established by the Commissioners at the object level. Any budgetary modifications at this level may only be made by resolution of the Commissioners.

The certificate of estimated resources may be amended during the year if projected increases or decreases in revenue are identified by the Chief Financial Officer. The amounts reported as the original budgeted amounts on the budgetary statements reflect the amounts on the certificate of estimated resources when the original appropriations were adopted. The amounts reported as the final budgeted amounts on the budgetary statements reflect the amounts on the amended certificate of estimated resources in effect at the time the final appropriations were passed.

The appropriation resolution is subject to amendment throughout the year with the restriction that appropriations cannot exceed estimated resources. The amounts reported as the original budgeted amounts reflect the first appropriation resolution for that fund that covered the entire year, including amounts automatically carried forward from prior years. The amounts reported as the final budgeted amounts represent the final appropriation amounts passed by the Commissioners during the year.

Note 3 – Change in Accounting Principle For year 2013, the Metroparks has implemented Governmental Accounting Standard Board (GASB) Statement No. 61, “The Financial Reporting Entity: Omnibus – an amendment of GASB Statements 14 and 34”.

This Statement modifies existing requirements for the assessment of potential component units in determining what should be included in the financial reporting entity, and financial reporting entity display and disclosure requirements. These changes were incorporated in the Metropark’s fiscal year 2013 financial statements. The implementation of this statement did not result in any change in the Metroparks’ financial statements.

Note 4 - Fund Balance Fund balance is classified as nonspendable, restricted, committed, assigned and/or unassigned based primarily on the extent to which the Metroparks is bound to observe constraints imposed upon the use of the resources in the government fund. The constraints placed on fund balance for the general fund is presented below:

- 29 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Fund Balance Nonspendable Inventory Prepaids Total Nonspendable

2013 $1,087,626 277,985 1,365,611

Committed to Capital Improvements

1,212,629

Assigned to Purchases on Order

2,338,839 21,212,689

Unassigned Total Fund Balance

$26,129,768

Note 5 - Budgetary Basis of Accounting While reporting financial position, results of operations, and changes in fund balance on the basis of generally accepted accounting principles (GAAP basis), the budgetary basis as provided by law is based upon accounting for transactions on a basis of cash receipts, disbursements and encumbrances. The Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (Non-GAAP Basis) and Actual, general fund, is presented on the budgetary basis to provide a meaningful comparison of actual results with the budget and to demonstrate compliance with State statute. The major differences between the budget basis and the GAAP basis (generally accepted accounting principles) are: 1.

Revenues are recorded when received in cash (budget) as opposed to when susceptible to accrual (GAAP).

2.

Expenditures are recorded when paid in cash (budget) as opposed to when the liability is incurred (GAAP).

3.

Encumbrances are treated as expenditures (budget) rather than as committed or assigned fund balance (GAAP).

4.

Unreported cash represents amounts received but not included as revenue on the budget basis operating statements. These amounts are included as revenue on the GAAP basis operating statement.

The following table summarizes the adjustments necessary to reconcile the GAAP basis statement to the budgetary basis statement for the general fund for the year ending December 31, 2013.

- 30 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Net Change in Fund Balance 2013 GAAP Basis Net Adjustment for Revenue Accruals Beginning Unrecorded Cash Ending Unrecorded Cash Net Adjustment for Expenditure Accruals Encumbrances Budget Basis

$14,307,975 (2,668,803) 43,956 1,196,758 662,622 (5,578,889) $7,963,619

Note 6 - Deposits and Investments Active deposits are public monies determined to be necessary to meet current demands upon the City treasury. Active monies must be maintained either as cash in the City treasury, in commercial accounts payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts, or in money market deposit accounts.

Inactive deposits are public deposits that Council has identified as not required for use within the current five year period of designation of depositories. Inactive deposits must either be evidenced by certificates of deposit maturing not later than the end of the current period of designation of depositories, or by savings or deposit accounts including, but not limited to, passbook accounts.

Interim deposits are deposits of interim monies. Interim monies are those monies which are not needed for immediate use but which will be needed before the end of the current period of designation of depositories. Interim deposits must be evidenced by time certificates of deposit maturing not more than one year from the date of deposit or by savings or deposit accounts including passbook accounts.

Interim monies held by the City can be deposited or invested in the following securities: 1.

United States Treasury bills, bonds notes, or any other obligation or security issued by the United States Treasury, or any other obligation guaranteed as to principal and interest by the United States;

2.

Bonds, notes, debentures, or any other obligations or securities issued by any federal government agency or instrumentality, including, but not limited to, Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, Government National Mortgage Association, and Student Loan Marketing Association. All federal agency securities shall be direct issuances of federal government agencies or instrumentalities;

3.

No-load money market mutual funds consisting exclusively of obligations described in (1) or (2) and repurchase agreements secured by such obligations, provided that investments in securities described in this division are made only through eligible institutions;

4.

Time certificates of deposit or savings or deposit accounts including, but not limited to, passbook accounts; - 31 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

5.

Bonds and other obligations of the State of Ohio;

6.

The State Treasurer's investment pool (STAR Ohio);

7.

Certain bankers’ acceptances and commercial paper notes for a period not to exceed one hundred eighty days in an amount not to exceed 25 percent of the interim monies available for investment at any one time if training requirements have been met; and

8.

Written repurchase agreements in the securities described in (1) or (2) provided the market value of the securities subject to the repurchase agreement must exceed the principal value of the agreement by at least two percent and be marked to market daily, and the term of the agreement must not exceed thirty days.

Investments in stripped principal or interest obligations, reverse repurchase agreements and derivatives are prohibited. The issuance of taxable notes for the purpose of arbitrage, the use of leverage and short selling are also prohibited. An investment must mature within five years from the date of purchase unless matched to a specific obligation or debt of the Metroparks, and must be purchased with the expectation that it will be held to maturity.

Investments may only be made through specified dealers and institutions. Payment for investments may be made only upon delivery of the securities representing the investments to the treasurer or qualified trustee or, if the securities are not represented by a certificate, upon receipt of confirmation of transfer from the custodian.

Deposits Custodial Credit Risk Custodial credit risk for deposits is the risk that in the event of bank failure, the Metroparks will not be able to recover deposits or collateral securities that are in the possession of an outside party. At December 31, 2013, $12,178,235 of the Metroparks’ bank balance of $12,690,762 was uncollateralized and uninsured. Although the securities were held by the pledging financial institutions’ trust departments and all statutory requirements for the deposit of money had been followed, noncompliance with Federal requirements could potentially subject the Metroparks to a successful claim by the FDIC. The Metroparks has no deposit policy for custodial risk beyond the requirements of State statute. Ohio law requires that deposits be either insured or be protected by eligible securities pledged to and deposited either with the Metroparks or a qualified trustee by the financial institution as security for repayment, or by a collateral pool of eligible securities deposited with a qualified trustee and pledged to secure the repayment of all public monies deposited in the financial institution whose market value at all times shall be at least one hundred five percent of the deposits being secured.

Investments At December 31, 2013, the Metroparks had $16,047,402 invested in STAR Ohio with an average maturity of 53.4 days.

Interest Rate Risk As a means of limiting its exposure to fair value losses caused by rising interest rates, the Metroparks’ investment policy requires that operating funds be invested primarily in short-term investments maturing within five years from the date of purchase and that the Metroparks’ investment - 32 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

portfolio be structured so that securities mature to meet cash requirements for ongoing operations and/or long-term debt payments. The stated intent of the policy is to avoid the need to sell securities prior to maturity. For 2013, no investments have been purchased with a life greater than five years.

Credit Risk STAR Ohio carries a rating of AAAm by Standards and Poor’s. Ohio law requires that STAR Ohio maintain the highest rating provided by at least one nationally recognized standard rating service. The Metroparks has no investment policy that addresses credit risk.

Concentration of Credit Risk Concentration of credit risk is defined as the risk of loss attributed to the magnitude of the Metroparks’ investments in a single issuer. The Metroparks’ investment policy requires diversification of the portfolio, but only states that the Treasurer shall diversify use of investment instruments to avoid incurring unreasonable risks inherent in overinvesting in specific instruments, individual institutions or maturities.

Note 7 - Receivables Receivables at December 31, 2013 consisted of property taxes, amounts due from the component unit, accounts (billings for user charged services), accrued interest and intergovernmental receivables. All receivables, except property taxes, are expected to be received within one year. Property taxes, although ultimately collectible, include some portion of delinquencies that will not be collected within one year.

The principal items of intergovernmental receivables are homestead and rollback, local government, grants and entitlements.

Property Taxes Property taxes include amounts levied against all real, public utility and tangible personal property located in the City. Property tax revenue received during 2013 for real and public utility property taxes represents collections of 2012 taxes.

2013 real property taxes are levied after October 1, 2013 on the assessed value as of January 1, 2013, the lien date. Assessed values are established by state law at 35 percent of appraised market value. 2013 real property taxes are collected in and intended to finance 2014.

Real property taxes are payable annually or semi-annually. If paid annually, payment is due December 31; if paid semi-annually, the first payment is due December 31, with the remainder payable by June 20.

Under certain circumstances, state statute permits later payment dates to be established.

Public utility tangible personal property currently is assessed at varying percentages of true value; public utility real property is assessed at 35 percent of true value. 2013 public utility property taxes which became a lien December 31, 2012, are levied after October 1, 2013, and are collected in 2014 with real property taxes.

The full tax rate for all Metroparks operations for the year ended December 31, 2013 was $2.75 per $1,000 of assessed value. The assessed values of real and public utility property upon which 2013 property tax receipts were based are as follows:

- 33 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Cuyahoga County

Medina County

Total

Real Property Residential/Agricultural Commercial Industrial/Public Utility Public Utility Property

$18,483,057,940 8,367,956,340 841,267,000

$280,040,130 14,777,890 4,926,770

$18,763,098,070 8,382,734,230 846,193,770

Total Assessed Value

$27,692,281,280

$299,744,790

$27,992,026,070

The Cuyahoga County Fiscal Officer collects property taxes on behalf of all taxing Metroparks in the County, including the Cleveland Metroparks and Hinckley Township. The Cuyahoga County Fiscal Officer periodically remits to the Metroparks its portion of the taxes collected. Property taxes receivable represents real and public utility property taxes and outstanding delinquencies which are measurable as of December 31, 2013 and for which there is an enforceable legal claim. In the general fund, the portion of the receivable not levied to finance 2013 operations is offset to deferred inflows of resources – property taxes. On the accrual basis, collective delinquent property taxes have been recorded as a receivable and revenue while on the modified accrual basis the revenue has been reported as deferred inflows of resources – unavailable revenue.

Note 8 - Risk Management The Metroparks is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.

During 2013, the Metroparks contracted with several companies for various types of insurance as follows: Company Houston Casualty Company

Type

Travelers

Flood Earthquake Employment Practices General Liability Liquor Liability Property Automobile Liability Inland Marine Inland Marine - Bridges Public Official/Law Enforcement Data Processing Equipment Commercial Crime Excess Liability Boiler and Machinery

Western Surety

Treasurer Bond

2013 Coverage $5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 295,347,093 1,000,000 22,192,199 17,044,910 2,000,000 1,600,000 250,000 10,000,000 40,000,000 5,000,000

There has not been a significant reduction in commercial coverage from the prior year and settled claims have not exceeded coverage in any of the last five years.

- 34 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Effective January 1, 2007, the Metroparks established a self-insured program in the general fund to provide employees’ medical, hospitalization and prescription drug coverage under the Preferred Provider Organization (PPO) plan option, in accordance with Section 9.833 of the Ohio Revised Code.

The employee deductible and out-of-pocket maximum are:

Single Family

Deductible

Out-of-Pocket Maximum

$200 to $750 $400 to $1,500

$800 to $2,250 $1,600 to $4,500

A third party administrator, Medical Mutual of Ohio, reviewed all claims which were then paid by the Metroparks. The Metroparks purchased stop-loss coverage of $100,000 per employee per year and aggregate stop loss should total claims exceed projected claims of $3,606,767 by 125 percent. The Metroparks pays coverage into the self-insurance program for employees based on the following percentages: 85 percent for the A plan, 90 percent for the B plan and 85 percent for Kaiser. Incurred but not reported claims of $301,000 have been accrued as a liability based on an actuarial valuation of health care benefits liability as of December 31, 2013. The estimate was not affected by incremental claim adjustment expenses and does not include other allocated or unallocated claims adjustment expenses.

Changes in the claims liability amounts for 2012 and 2013 were:

2012 2013

Beginning of Year $355,000 393,000

Current Year Claims $3,847,319 3,414,759

Claim Payments $3,809,319 3,506,759

Balance at End of Year $393,000 301,000

The Metroparks participates in the State Workers’ Compensation retrospective rating and payment system. This plan involves the payment of a minimum premium for administrative services and stop-loss coverage plus the actual claim costs for employees injured in 2013. The maintenance of these benefits is accounted for in the general fund. Incurred but not reported claims of $697,774 have been accrued as a liability at December 31, 2013 based on an estimate by the Metroparks.

The claims liability of $697,774 reported at December 31, 2013, is based on the requirements of Governmental Accounting Standards Board Statement No. 30 which requires that a liability for unpaid claims costs, including estimates of costs relating to incurred but not reported claims, be reported. The estimate was not affected by incremental claim adjustment expenses and does not include other allocated or unallocated claims adjustment expenses. Changes in the workers’ compensation claims liability amounts for 2012 and 2013 were:

2012 2013

Beginning of Year $1,048,284 863,098

Current Year Claims $116,402 443,330

Claim Payments $787,877 1,153,657

- 35 -

Change in Estimate $486,289 545,003

Balance at End of Year $863,098 697,774

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Note 9 - Capital Assets A summary of changes in capital assets during 2013 follows:

Governmental Activities Capital Assets, Not Being Depreciated Land Land Improvements Construction in Progress Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated Site Structures Exhibits Buildings M achinery and Equipment Vehicles Infrastructure: Bridges Fords Dams Tunnels Utilities Roads All Purpose Trails Golf Course Cart Paths Other Paved Areas Total Capital Assets, Being Depreciated

Balance 12/31/2012

Additions

$71,845,586 6,819,111 15,570,816

$34,874,588 0 1,482,308

94,235,513

36,356,896

(13,139,244)

117,453,165

2,873,634 8,305,405 138,070,464 18,261,210 9,961,339

6,804,800 0 32,108,670 2,604,097 602,981

0 0 0 (274,645) (71,287)

9,678,434 8,305,405 170,179,134 20,590,662 10,493,033

36,789,959 2,514,510 156,375 837,629 238,346 20,549,086 16,094,044 1,023,215 5,781,105

3,542,043 0 32,460 0 594,000 3,702,319 1,694,230 67,716 504,386

0 0 0 0 0 (186,216) (102,432) (78,917) (33,809)

40,332,002 2,514,510 188,835 837,629 832,346 24,065,189 17,685,842 1,012,014 6,251,682

261,456,321

52,257,702

(747,306)

312,966,717

Deletions

Balance 12/31/2013

$0 $106,720,174 0 6,819,111 (13,139,244) 3,913,880

Less Accumulated Depreciation: Site Structures Exhibits Buildings M achinery and Equipment Vehicles Infrastructure: Bridges Fords Dams Tunnels Utilities Roads All Purpose Trails Golf Course Cart Paths Other Paved Areas

(1,426,900) (1,167,469) (40,864,397) (13,220,095) (7,719,439)

(132,678) (191,265) (3,390,930) (957,776) (608,548)

0 0 0 234,843 71,287

(1,559,578) (1,358,734) (44,255,327) (13,943,028) (8,256,700)

(14,131,556) (897,181) (94,977) (86,473) 0 (7,016,026) (8,385,261) (401,322) (2,098,575)

(827,791) (62,511) (1,659) (20,941) (5,959) (1,018,143) (799,581) (47,215) (287,365)

0 0 0 0 0 186,216 102,432 78,917 33,809

(14,959,347) (959,692) (96,636) (107,414) (5,959) (7,847,953) (9,082,410) (369,620) (2,352,131)

Total Accumulated Depreciation

(97,509,671)

(8,352,362)

707,504

(105,154,529)

(39,802)

207,812,188

Total Capital Assets Being Depreciated, Net

163,946,650

43,905,340

Governmental Activities Capital Assets, Net

$258,182,163

$80,262,236

- 36 -

($13,179,046) $325,265,353

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Depreciation expense for 2013 was charged to governmental functions as follows:

Park Operations Zoo Operations Golf Course Rangers Administration

2013 $4,661,491 2,831,282 267,467 241,489 350,633

Total

$8,352,362

During 2013, the Metroparks received $32,318,700 in land donations, $6,478,264 in site structure donations, and $20,925,787 in building donations for the lakefront and Euclid Beach properties. The Metroparks has recorded these as capital contributions.

Note 10 - Long Term Obligations Changes in the long-term obligations of the Metroparks during 2013 were as follows: Outstanding January 1

Additions

(Reductions)

Balance at End of Year

Amount Due in One Year

Compensated Absences Retrospective Workers' Compensation

$5,706,162

$125,126

$451,713

$5,379,575

$1,219,180

863,098

443,330

608,654

697,774

41,683

Total

$6,569,260

$568,456

$1,060,367

$6,077,349

$1,260,863

Compensated absences and the retrospective workers’ compensation will be paid from the general fund.

Note 11 - Defined Benefit Pension Plan Ohio Public Employees Retirement System Plan Description - The Metroparks participates in the Ohio Public Employees Retirement System (OPERS). OPERS administers three separate pension plans. The Traditional Pension Plan is a costsharing, multiple-employer defined benefit pension plan. The Member-Directed Plan is a defined contribution plan in which the member invests both member and employer contributions (employer contributions vest over five years at 20 percent per year). Under the Member-Directed Plan, members accumulate retirement assets equal to the value of the member and vested employer contributions plus any investment earnings. The Combined Plan is a cost-sharing, multiple-employer defined benefit pension plan. Under the Combined Plan, OPERS invests employer contributions to provide a formula retirement benefit similar in nature to, but less than, the Traditional Pension Plan benefit. Member contributions, the investment of which is self-directed by the members, accumulate retirement assets in a manner similar to the Member-Directed Plan.

- 37 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

OPERS provides retirement, disability, survivor and death benefits, and annual cost-of-living adjustments to members of the Traditional Pension and Combined Plans. Members of the Member-Directed Plan do not qualify for ancillary benefits. Authority to establish and amend benefits is provided by Chapter 145 of the Ohio Revised Code. OPERS issues a stand-alone financial report. Interested parties may obtain a copy by visiting https://www.opers.org/investments/cafr.shtml, writing to OPERS, 277 East Town Street, Columbus, OH 43215-4642, or by calling 614-222-5601 or 800-222-7377.

Funding Policy – The Ohio Revised Code provides statutory authority for member and employer contributions and currently limits the employer contribution to a rate not to exceed 14 percent of covered payroll for state and local employer units and 18.1 percent of covered payroll for law enforcement and public safety employer units. Member contribution rates, as set forth in the Ohio Revised Code, are not to exceed 10 percent of covered payroll for members in State and local divisions. The Ohio Revised Code authorizes OPERS to calculate employee contribution rates for public safety employees and limits the law enforcement rate to the public safety rate plus an additional percentage not to exceed two percent. For the year ended December 31, 2013, members in state and local divisions contributed 10 percent of covered payroll while public safety and law enforcement members contributed 12.0 percent and 12.6 percent, respectively. Effective January 1, 2014, the member contribution rates law enforcement increased to 13 percent. While members in the state and local divisions may participate in all three plans, law enforcement and public safety divisions exist only within the Traditional Pension Plan. For 2013, member and employer contribution rates were consistent across all three plans.

The Metroparks’ 2013 contribution rate was 14.0 percent, except for those plan members in law enforcement or public safety, for whom the City’s contribution was 18.10 percent of covered payroll.

The portion of employer contributions used to fund pension benefits is net of post-employment health care benefits. For 2013, the portion of employer contribution allocated to health care was 1.00 percent for members in the Traditional Plan and the Combined Plan. Effective January 1, 2014, the portion of employer contributions allocated to health care increased to 2 percent Employer contribution rates are actuarially determined.

The Metroparks’ required contributions for pension obligations to the Traditional Pension and Combined Plans for the years ended December 31, 2013, 2012, and 2011 were $4,128,001, $3,326,324, and $3,031,626, respectively. For 2013, 94.53 percent has been contributed with the balance being reported as an intergovernmental payable. The full amount has been contributed for 2012 and 2011. Contributions to the Member-Directed Plan for 2013 were $177,351 made by the Metroparks and $126,680 made by plan members.

Note 12 - Postemployment Benefits Plan Description – Ohio Public Employees Retirement System (OPERS) administers three separate pension plans: The Traditional Pension Plan—a cost-sharing, multiple-employer defined benefit pension plan; the Member-Directed Plan—a defined contribution plan; and the Combined Plan—a cost-sharing, multiple-employer defined benefit pension plan that has elements of both a defined benefit and defined contribution plan.

OPERS maintains a cost-sharing multiple-employer defined benefit post-employment health care plan for qualifying members of both the Traditional Pension and the Combined Plans. Members of the MemberDirected Plan do not qualify for ancillary benefits, including post-employment health care coverage. The plan includes a medical plan, prescription drug program and Medicare Part B premium reimbursement.

- 38 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

In order to qualify for post-employment health care coverage, age and service retirees under the Traditional Pension and Combined Plans must have 10 or more years of qualifying Ohio service credit.

Health care coverage for disability benefit recipients and qualified survivor benefit recipients is available.

The Ohio Revised Code permits, but does not mandate, OPERS to provide health care benefits to its eligible members and beneficiaries. Authority to establish and amend benefits is provided in Chapter 145 of the Ohio Revised Code.

Disclosures for the health care plan are presented separately in the OPERS financial report which may be obtained by visiting https://www.opers.org/investments/cafr.shtml, writing to OPERS, 277 East Town Street, Columbus, Ohio 43215-4642, or by calling 614-222-5601 or 800-222-7377.

Funding Policy – The post-employment health care plan was established under, and is administered in accordance with, Internal Revenue Code 401(h). The Ohio Revised Code provides the statutory authority requiring public employers fund post-employment health care through their contributions to OPERS. A portion of each employer’s contribution to the traditional or combined plans is set aside for the funding of post-employment health care.

Employer contribution rates are expressed as a percentage of the covered payroll of active members. In 2013, state and local employers contributed at a rate of 14.0 percent of covered payroll, and public safety and law enforcement employers contributed at 18.10 percent. These are the maximum employer contribution rates permitted by the Ohio Revised Code.

Each year, the OPERS Retirement Board determines the portion of the employer contribution rate that will be set aside for funding of post-employment health care benefits. For 2013, the portion of employer contributions allocated to health care for members in the Traditional Plan and the Combined Plan was 1.0 percent. Effective January 1, 2014, the portion of employer contributions allocated to health care was raised to 2 percent for both plans, as recommended by OPERS actuary.

The OPERS Retirement Board is also authorized to establish rules for the payment of a portion of the health care benefits provided, by the retiree or their surviving beneficiaries. Payment amounts vary depending on the number of covered dependents and the coverage selected. Active members do not make contributions to the post-employment health care plan.

The Metroparks’ contributions allocated to fund post-employment health care benefits for the years ended December 31, 2013, 2012, and 2011 were $317,539, $1,394,612, and $1,272,429, respectively. For 2013, 94.53 percent has been contributed with the balance being reported as an intergovernmental payable. The full amount has been contributed for 2012 and 2011.

Changes to the health care plan were adopted by the OPERS Board of Trustees on September 19, 2012, with a transition plan commencing January 1, 2014. With the recent passage of pension legislation under SB 343 and the approved health care changes, OPERS expects to be able to consistently allocate 4 percent of the employer contributions toward the health care fund after the end of the transition period.

Note 13 – Other Benefits Compensated Absences The criteria for determining vacation and sick leave liabilities are derived from negotiated agreements and personal contracts. Employees earn vacation and sick leave at different rates which are also affected by length of service. Vacation can be accumulated for up to three years. Sick leave accrual is continuous, without limit.

- 39 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Upon retirement, resignation, or death, employees with ten or more years of service with the Metroparks will be paid for one fourth of their accumulated hours of sick leave. Upon retirement, termination, or death, an employee will be paid for unused vacation up to the three year limit.

Holiday time may be accumulated for rangers indefinitely and compensatory time earned must be taken by the end of the subsequent calendar year.

Health, Dental, Vision and Life Insurance For those employees who opt not to take part in the self-insurance PPO health insurance program, an option to select an HMO from Kaiser Permanente is provided and premiums are paid by the Metroparks, based on the following percentages: 85 percent for the A plan, 90 percent for the B plan and 85 percent for Kaiser. The Metroparks provides dental through Aetna Dental and vision through Union Eye Care. It also provides life insurance and accidental death and dismemberment insurance to its employees through Reliance Standard Insurance.

Flexible Benefit Plan Section 125 of the Internal Revenue Service (IRS) code permits the Flexible Benefit Plan, as established by the Metroparks. The Flexible Benefit Plan (FBP) allows employees to defer pay on a pre-tax basis to pay premium contribution(s) and Flexible Spending Accounts (FSA) reimbursements for qualified medical (up to $2,500) and /or dependent care (up to $5,000) expenses. The FSA accounts allow employees to pay for qualified out-of-pocket medical and dependent care expenses with pre-tax income.

Amounts deposited into the FSA account for medical expenses may be used at the employee’s discretion for qualified expenses incurred during the plan year (January 1 through March 15 of the following year).

Amounts put into the FSA accounts are deducted before Federal, State and Medicare taxes are withheld.

A provision of the code provides that any funds left in the FSA declaration at the end of the plan year are forfeited (use it or lose it). $73,823 has been reported as a liability in the agency fund at December 31, 2013.

Amounts deposited into the FSA account for dependent care may be used at the employee’s discretion for qualified expenses incurred during the calendar year.

Note 14 - Contingencies The Metroparks is a party to legal proceedings seeking damages. The Metroparks management is of the opinion that the ultimate disposition of a majority of the claims and legal proceedings will not have a material effect, if any, on the financial condition of the Metroparks.

- 40 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Note 15 – Significant Commitments Contractual Commitments At December 31, 2013, the Metroparks’ significant contractual commitments in excess of $50,000 consisted of:

Seitz Builders Hummel Construction Karvo Paving Co. Taylor Studios Carousel Works Biohabitats Huffman Equipment Rental Whitehouse Construction Jones Stuckey Brookside Construction Olgesby Construction New Creation Builders Nature Serve URS Corporation Michael Baker Jr., Inc. Total

Contract Amount

Amount Paid

Remaining on Contract

$6,034,120 1,890,000 1,103,841 701,961 671,480 212,300 176,625 154,700 93,555 92,243 81,900 77,000 61,424 52,300 50,001

$6,026,220 103,987 1,091,704 696,245 280,800 0 48,487 0 0 81,143 0 0 56,122 48,000 0

$7,900 1,786,013 12,137 5,716 390,680 212,300 128,138 154,700 93,555 11,100 81,900 77,000 5,302 4,300 50,001

$11,453,450

$8,432,708

$3,020,742

The amounts of $453,027 and $103,770 in contracts and retainage payable have been capitalized.

Encumbrances Encumbrances are commitments related to unperformed contracts for goods or services. Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At fiscal year end the amount of encumbrances expected to be honored upon performance by the vendor in the next fiscal year were $5,578,889.

Note 16 – Related Party Transaction During 2013, the Metroparks received $1,987,071 from the Zoo Society, a discretely presented component unit of the Metroparks. The Metroparks is also reporting a due from component unit in the amount of $1,064,559.

Note 17 – Cleveland Zoological Society (Zoo Society) Summary of Significant Accounting Policies Nature of Activities The Cleveland Zoological Society (the “Zoo Society”) is a nonprofit organization established to promote the conservation and propagation of wildlife – particularly endangered species – primarily through the support of Cleveland Metroparks Zoo (the “Zoo”) which is owned and operated by Cleveland Metropolitan Park Metroparks (the “Metroparks”). The Zoo Society will engage the community in support of the Zoo and in its mission “to improve the future for wildlife” and will marshal the resources necessary to ensure that the Zoo remains one of the region’s preeminent destinations and ultimately one of the top five zoos in the country.

- 41 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

The Zoo Society is governed by a Board of Trustees and is a separate and distinct entity from the Cleveland Metropolitan Park District. The Zoo Society’s activities are primarily in support of the District’s Zoo, subject to approval by the Zoo Society’s board.

Basis of Presentation The Zoo Society follows authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) which established the FASB Accounting Standards Codification (“ASC”) as the single source of authoritative accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared on the accrual basis of accounting. Net assets and revenues, expenses, gains and losses are classified based on the existence or absence of donorimposed restrictions. Accordingly, the net assets on of the Zoo Society and changes therein are classified and reported as follows: Unrestricted Net Assets – Net assets that are not subject to donor-imposed restrictions. These include both board-designated and undesignated net assets.

Unrestricted Net Assets (Undesignated) – Consists of net assets that are not subject to donor-imposed restrictions nor have been designated for a specific purpose by the Zoo Society’s Board of Trustees. The purpose of undesignated unrestricted net assets is to provide support for the daily operations and the mission of the Zoo Society.

Unrestricted Net Assets (Board-Designated) – Consists of net assets that can be used only for the specific purposes determined by a formal action of the Zoo Society’s Board of Trustees, which is the Zoo Society’s highest level of decision-making authority. Commitments may be changed or lifted only by the Zoo Society’s Board of Trustees taking the same formal action that imposed the constraint originally.

The purpose of board-designated net assets is to provide funding to ensure the continuous operation of the Zoo Society (the Sustaining Fund); to support projects related to science, conservation, and education; and to support initiatives to improve the future for wildlife (the ZooFutures Fund).

Temporarily Restricted Net Assets – Net assets subject to donor-imposed restrictions that may or will be met, either by actions of the Zoo Society and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as “net assets released from restrictions.” If donor-imposed restrictions are met in the same year as they are imposed, the related contributions, grants, and/or investment income are reported as temporarily restricted revenue with an offset contra-revenue account to properly classify as unrestricted revenue.

Permanently Restricted Net Assets – Net assets subject to donor-imposed restrictions that they be maintained by the Zoo Society in perpetuity.

Functional Allocation of Expenses The costs of providing various programs and related supporting services have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated to the appropriate programs and supporting services.

Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

- 42 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Cash Equivalents For purposes of the statements of cash flows, the Zoo Society considers unrestricted or short-term temporarily restricted, highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Board-designated cash and cash equivalents are not considered cash and cash equivalents for purposes of the statements of cash flows. Applicable amounts have been classified as investments on the statements of financial position.

Cash receipts from the sale of financial assets that are converted nearly immediately into cash are classified as cash inflows from operating activities on the statement of cash flows, unless the donor restricted the use of contributed resources to long-term purposes, in which case those cash receipts are classified as cash inflows from financing activities.

Contributions and Pledges Receivable Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions.

Unconditional pledges receivable are recognized as revenues in the period the promise is received.

Conditional pledges receivable are recognized when the conditions on which they depend are substantially met. The pledges are stated at their estimated realizable value. Pledges that are to be received over a period of years are discounted to their present value assuming their respective payment terms and an appropriate discount rate as of the date the pledge is received. The discount is amortized into contribution revenue over the term of the respective pledge agreement.

The Zoo Society and the Zoo are financially interrelated entities, as described in Statement of Financial Accounting Standards, No. 136, Transfers of Assets to a Not-for-Profit Organization of Charitable Trust that Raises or Holds Contributions for Others, therefore, contributions raised by the Zoo Society on behalf of the Zoo are reported as temporarily restricted contribution revenues and amounts to be remitted to the Zoo are recorded as expense under the caption of “Cleveland Metropolitan Park Metroparks� in the accompanying statements of activities.

Investments Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair values in the statements of financial position.

Unrealized gains and losses are included in investment income in the statements of activities.

Office Equipment, Software, and Network Resources Office equipment, software, and network resources are depreciated utilizing the straight-line method over their estimated useful lives ranging from three to ten years. The Zoo Society capitalizes purchases or donations of capital assets that exceed $500.

Purchased office equipment, software, and network resources are stated at cost.

Donations of capital assets are recorded as support at their estimated fair value at the date of donation.

Such donations are reported as unrestricted support unless the donor has restricted the donated asset for a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire office equipment, software, and network resources are reported as restricted support.

- 43 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Property Held for Resale Property held for sale represents real estate received as a gift during the year ended December 31, 2013. The Zoo Society had determined after receiving the gift that this property would be held for sale and disposed of as early as possible. Per the donor’s request, the proceeds related to the disposition of this property are to be split for the following restricted purposes: $15,000 for the Circle of Wildlife campaign, specifically to sponsor a figure on the carousel, $10,000 for ZooFund, and the remaining portion to be designated for the Sarah Allison Steffee Center for Zoological Medicine at the Zoo for veterinary equipment and programs. The Zoo Society expects to dispose of this property within the next 12 months.

Split-Interest Agreements The Zoo Society receives gift annuities where donors contribute assets in exchange for the right to receive an annual return during their lifetimes. Upon receipt of a gift annuity, the Zoo Society records the fair value of the assets received and records a liability for the estimated present value of future cash outflows to the annuitant, determined on an actuarial basis, as a “liability under split-interest agreements” in the accompanying statements of financial position. The difference between the fair value of the assets received and the estimated liability is recorded as unrestricted, temporarily restricted, or permanently restricted contribution revenue in accordance with the donor’s intent in the accompanying statements of activities.

The Zoo Society holds beneficial interests in perpetual trusts. The Zoo Society records its share of the fair market value of such trusts as long-term assets and permanently restricted contribution revenue at the date it is notified of its interest in such trusts. As the Zoo Society receives distributions from these trusts, it records the distributions as interest income. The interest income is classified as either unrestricted or temporarily restricted in accordance with the terms of the trust agreement. Changes in the fair value of the Zoo Society’s beneficial interest in perpetual trusts are recorded as permanently restricted gains/losses in the accompanying statements of activities under the caption “change in value of split-interest agreements.”

In-Kind Contributions In-kind contributions are reflected as revenues at their estimated fair value at the date of donation. The Zoo Society reports gifts of media support, food for special events, and other nonmonetary contributions as unrestricted revenue and expense in the accompanying statements of activities unless accompanied by explicit donor-imposed restrictions, in which case, the contributions would be recorded as either temporarily or permanently restricted revenues in accordance with the donor restrictions.

Contributed Services The Zoo Society recognizes contributions of services received when those services (a) create or enhance nonfinancial assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by the donation.

Income Taxes The Zoo Society is tax-exempt, under Section 501(c)(3) of the Internal Revenue Code (the “IRC”) of 1986. No provision for federal income taxes has been reported in its financial statements. In addition, the Zoo Society has been classified as an organization that is not a “private foundation” within the meaning of Section 509(a) of the IRC. In accordance with the “Income Taxes” topic of the FASB ASC, uncertain income tax positions are evaluated at least annually by management. As of December 31, 2012 and 2011, the Zoo Society has identified no uncertain income tax positions and has incurred no amounts for income tax penalties and interest for the years then ended.

The Zoo Society files information returns in the United States and local jurisdictions. With few exceptions, the Zoo Society is no longer subject to federal and local income tax examinations by tax authorities for the years ended before December 31, 2009.

- 44 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Concentrations of Credit Risk Financial instruments which potentially subject the Zoo Society to concentrations of credit risk consist of cash and temporary investments, investment securities, and pledges receivable.

The Zoo Society has significant investments in equity and debt securities and is, therefore, subject to concentrations of credit risk. Investments are managed by investment advisors who are supervised by the Trustees. The investment advisors are required to manage the Zoo Society’s investments in accordance with its investment policy. The investment policy contains investment criteria that the Zoo Society believes should reduce, to an extent, the potential for significant concentrations of credit risk. Though the market value of investments is subject to fluctuations on a year-to-year basis, the Trustees believe that the investment policy is prudent for the long-term welfare of the Zoo Society.

Credit risk with respect to pledges receivable is limited due to the number and credit worthiness of the foundations, corporations, and individuals who comprise the contributor base. .Advertising Advertising costs are expensed when incurred and included in program and supporting expenses. Total advertising cost expensed was $0 and $28,005 in 2013.

Subsequent Events In preparing these financial statements, the Zoo Society has evaluated events and transactions for potential recognition or disclosure through April 9, 2014, the date the financial statements were available to be issued.

Cash and Cash Equivalents Cash and cash equivalents consisted of the following at December 31, 2013: 2013 Unrestricted - available for operating expenses Donor restricted for short-term purposes Board designated for short-term purposes Funds held for others Board designated for African Elephant Crossing

$69,133 1,591,826 56,709 56,700 0 $1,774,368

Pledges Receivable Pledges receivable, net of applicable discounts to net present value and allowance for uncollectible pledges receivable, are comprised of the following at December 31: Unrestricted - available for operating expenses Restricted for African Elephant Crossing Restricted for Circle of Wildlife

2013 $71,603 265,729 613,817 $951,149

Pledges were discounted to their present value assuming their respective terms and discount rates ranging from 4.48 to 4.85 percent dependent upon prevailing rates in the year in which a pledge is received. The pledges receivable are scheduled to be collected as follows:

- 45 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

2013 $790,507 100,000 100,000 0

Payable within one year Payable in two years Payable in three years Payable in four years Less discounts to net present value Less allowance for uncollectible pledges receivable Net pledges receivable

990,507 (36,858) (2,500) $951,149

Sarah Allison Steffee Center for Zoological Medicine at the Zoo During 2004, an anonymous donor pledged an intent to grow a donor-advised fund up to $1.5 million. The investment income from the fund will be used to create a world class international veterinary program for the Sarah Allison Steffee Center for Zoological Medicine at the Zoo. Donor-advised funds allow donors to suggest the purpose for which a gift will be used, but are not binding. As such, contribution revenue is recorded as the Zoo Society receives notification that a distribution has been approved by the fund.

African Elephant Crossing During 2005, The Zoo Society approved a conditional fundraising campaign in the amount of $12.5 million to support one of the Zoo’s major capital improvements, the African Elephant Crossing (the “AEC”), as well as non-capital initiatives related to the project (e.g., programming for education, conservation, and research; fundraising expenses incurred related to the campaign and related initiatives; and marketing sponsorships for dedicating and opening the new facility and raising awareness of the Zoo and the Zoo Society). The Zoo Society’s commitment to the Zoo was contingent upon the ability to raise such funding from the proceeds of the capital campaign and on the Zoo approving the project. During 2008, the Zoo broke ground on the project.

During 2008, the Zoo Society received a conditional promise to give to the AEC campaign from the Ohio Cultural Facilities Commission (OCFC). The conditional promise came in the form of a capital funds appropriation in the amount of $150,000. The promise was conditioned upon the AEC project becoming fully funded, open to the public, and the execution of a joint use agreement with a higher education institution. The joint use agreement was not executed and accordingly, no amount related to this conditional promise had been recognized as revenue by the Zoo Society as of December 31, 2012. During 2013, this funding was reintroduced into the state budget, removing the requirement to obtain a joint use agreement with a higher education institution. Receipt of this funding was conditioned upon the Zoo Society providing supporting documentation of expenditures related to this funding and completion and approval of a performance report. Those conditions were met subsequent to December 31, 2013, and as such, the Zoo Society recognized $150,000 as revenue related to this promise to give in 2014.

Cleveland Metroparks Zoo’s Conservation Medicine Program During 2008, the Zoo Society received a conditional promise to give (cost-reimbursement grant) from the Institute of Museum and Library Services for the Cleveland Metroparks Zoo’s Conservation Medicine Program in the amount of $142,666.

- 46 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Event Center In October 2013, the Zoo Society received a conditional promise to give (challenge grant) from the Fred A. Lennon Charitable Trust (the “Trust”) in the amount of $150,000, receivable in three equal annual installments up to a maximum of $50,000 each year. The Trust will match any private (non-governmental) contributions (via cash, check, or securities) for the purpose of an Event Center (the “Event Center,” see subsequent event note) made subsequent to October 11, 2013, up to the total amount of the challenge. If the Zoo Society does not raise $50,000 within the first 12 months of challenge grant period, the Trust will match the total amount raised and forfeit the remaining balance of the entire grant. As of December 31, 2013, the Zoo Society has yet to raise funds for the Event Center and, as such, no revenue was recognized related to this conditional promise to give.

Zoo Education and Workforce Development During 2013, the Zoo Society received a conditional promise to give related to funding for the Zoo Education and Workforce Development program for $300,000. The funds are to be received in $60,000 increments over a period of five years. The Zoo Society is to use this funding to implement programs for students in certain school districts, conduct a longitudinal study over these students enrolled in the school districts that attend programs, and perform annual reviews of the programs. The receipt of funds is conditioned upon the donor’s review of the programs and determination of satisfactory performance with respect to the terms of the agreement. The Zoo Society recognized revenue related to this conditional promise to give $60,000 during the year ended December 31, 2013.

Marketable Securities Included in marketable securities at December 31, 2013 was $8,430,413 of board-designated net assets.

The following schedule summarizes investment return for the year ended December 31:

Interest and dividends Net realized and unrealized gains T otal

Unrestricted $223,975 1,388,788 $1,612,763

2013 T emporarily Restricted $2,350 0 $2,350

T otal $226,325 1,388,788 $1,615,113

Fair Value Measurements In accordance with the “Fair Value Measurements” topic of the FASB ASC, the Zoo Society uses a threelevel fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own valuation assumptions. These inputs reflect management’s judgment about the assumptions that a market participant would use in pricing the asset and are based on the best available information, which has been internally developed.

- 47 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Financial assets (liabilities) consisted of the following at December 31: 2013 Level 1 Cash in money market and Certificates of deposit Mutual funds - equities Mutal funds - fixed income Equity exchange traded funds Total bond market index fund Total international stock fund Prime money market index fund Total stock market index fund Beneficial interest in perpetual trusts

Level 2

Total

$8,223 78,644 82,595 5,221 2,240,108 1,393,800 490,070 5,711,627 0

$0 0 0 0 0 0 0 0 592,116

$8,223 78,644 82,595 5,221 2,240,108 1,393,800 490,070 5,711,627 592,116

$10,010,288

$592,116

$10,602,404

The fair value of the beneficial interests in perpetual trusts is based upon the value of the underlying assets within the trusts multiplied by the Zoo Society’s proportionate share of said trusts. As the underlying assets within these trust are primarily Level 1 investments, the value of the Zoo Society’s interests in the perpetual trusts is shown as a Level 2 measurement as the trusts themselves are not actively traded (Level 1) instruments.

Assets reported at fair value on a non-recurring basis were as follows at December 31: 2013 Level 1 Property held for resale

$0

Level 2

Total

$110,000

$110,000

Property held for sale reported at fair value relates to real estate that was received as a gift as previously discussed. The fair value was determined through recent third-party appraisals.

Board-Designated Net Assets The Board of Trustees establishes and maintains board-designated funds. The Sustaining Fund and the ZooFutures Fund comprise a significant majority of the board-designated net assets of the Zoo Society.

Additionally, the Zoo Society has established and maintains funds to supplement the African Elephant Crossing and other Special Project Initiatives.

The Sustaining Fund was established in 1991 with the express purpose of ensuring the Zoo Society’s continuing existence by providing a source of operating funds to the Zoo Society in the event of economic hardship. During 2010, the Sustaining Fund lent $1,000,000 in cash to the Zoo Society to fulfill its obligations to the District for the African Elephant Crossing exhibit. This amount was repaid in full during 2012. In 2012, the Sustaining Fund Policy was amended by the Executive Committee based upon recommendation from the Finance/Investment Committee. The Sustaining Fund, in year 2011 and beyond, may be used to fund discretionary annual distributions to the Zoo Society and fund short-term loans to the Zoo Society to supplement capital campaign or other cash flow management issues; so long as the Sustaining Fund balance remains above 50 percent of the Zoo Society’s current budgeted annual unrestricted operating expenses. Approved discretionary annual distributions were $-0- and $475,000, and the Zoo Society expended $245,746 for the year ended December 31, 2013.

- 48 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

The ZooFutures Fund was established in 1998 with the express purpose of receiving planned gifts and other contributions and to act similar to an endowment (quasi-endowment) which is administered and operated in support of Zoo Society activities.

Board-designated net assets were as follows at December 31: 2013 Sustaining Fund ZooFutures Fund African Elephant Crossing Special Projects Allocations

$5,254,525 2,987,202 133,000 112,395 $8,487,122

Net Asset Classification of Endowment Funds The Zoo Society’s ZooFutures Fund consists of one fund established to fund a variety of programs. The ZooFutures Fund includes both donor-restricted funds and board-designated funds. As required by GAAP, net assets associated with endowment funds, including funds designated by the Board of Trustees to function as quasi-endowments, are classified and reported based on the existence or absence of donorimposed restrictions.

The Board of Trustees of the Zoo Society has interpreted the State Prudent Management of Institutional Funds Act (SPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, The Zoo Society classifies as permanently restricted net assets (a) the original value of gifts donated, (b) the original value of subsequent gifts, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. In accordance with SPMIFA, the Zoo Society considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1) (2) (3) (4)

The duration and preservation of the fund.

The purposes of the Zoo Society and the donor-restricted endowment fund.

General economic conditions.

The investment policies of the Zoo Society.

During the year ended December 31, 2013, the Zoo Society had the following endowment-related activities: Donor-Restricted Endowment Funds Investment return Investment income Net realized and unrealized gains Contributions to perpetual endowment Amounts appropriated for expenditure

Board-Designated Quasi-Endowment Funds

$2,350 0 0 (2,350)

Total change in endowment funds

$0

- 49 -

$59,961 512,848 23,201 (65,352) $530,658

Total $62,311 512,848 23,201 (67,702) $530,658

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Endowment net asset composition by type of fund as of December 31, 2013: Unrestricted $0 2,987,202 $2,987,202

Donor-restricted endowment funds Board-designated quasi-endowment funds

Permanently Restricted $47,000 0 $47,000

Total $47,000 2,987,202 $3,034,202

Changes in endowment net assets for the fiscal year ended December 31, 2013: Unrestricted

Temporarily Restricted

Permanently Restricted

Total

Endowment net assets, beginning of year Investment return: Investment income Net realized and unrealized gains Contributions to perpetual endowment Appropriation of endowments assets for expenditure

$2,456,544

$0

$47,000

$2,503,544

59,961 512,848 23,201

2,350 0 0

0 0 0

62,311 512,848 23,201

(65,352)

(2,350)

Endowment net assets, end of year

$2,987,202

$0

0 $47,000

(67,702) $3,034,202

2013 Permanently restricted net assets: The portion of perpetual endowment funds that is required to be retained permanently either by explicit donor stipulation or by SPMIFA

$47,000

Total endowment funds classified as permanently restricted net assets

$47,000

Return Objectives and Risk Parameters The Zoo Society has adopted investment and spending policies for the ZooFutures Fund that attempt to provide a predictable stream of funding while seeking to maintain the purchasing power of the assets. Assets include those assets of donor-restricted funds that the Zoo Society must hold in perpetuity or for a donor-specified period(s), as well as board-designated funds.

Under this policy, as approved by the Board of Trustees, investments of all Zoo Society assets are directed by the Investment Committee of the Zoo Society utilizing professional managers. The standard for the Investment Committee with regard to ZooFutures Fund assets shall be the preservation of corpus while prudently maximizing real growth. The Zoo Society will conduct a quarterly monitoring of the portfolio. Investment performance will be measured against comparative market indices including the Standard & Poor 500 Index and the Lehman Brothers Aggregate Bond Index. The performance of the overall portfolio will also be monitored quarterly and compared against appropriate benchmarks.

Strategies Employed for Achieving Objectives To satisfy its long-term rate-of-return objectives, the Zoo Society relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Zoo Society targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints.

Spending Policy Recommendations for the use of ZooFutures Fund assets free of donor restriction shall be the responsibility of a ZooFutures Grants Committee (the “Grants Committee”). Recommendations of the Grants Committee shall be subject to confirmation by the Zoo Society’s Executive Committee.

Grants from the ZooFutures Fund shall be in support of Zoo and Zoo Society activities, zoological conservation, and such other purposes as the Zoo Society’s Board of Trustees shall deem appropriate.

Except in special circumstances, and except for recommending specific uses of generally restricted donor - 50 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

funds, the Grants Committee shall limit its recommendations in the aggregate to an amount which shall not exceed in any calendar year a sum equal to five percent of the ZooFutures Fund assets. Amounts that have been approved for expenditure, in any given year, but not expended by the end of year, are carried over to subsequent years. As of December 31, 2013, $161,095 represents the cumulative carry forward of prior approved, but unexpended, annual allocations.

Split-Interest Agreements The Zoo Society administers various charitable gift annuities. Under these agreements, the Zoo Society remits fixed payments to the donors on a quarterly basis. Interest rates range from 4.5 percent to 8.8 percent. Using applicable mortality tables, quarterly payments are estimated to extend through 2034.

Investments, primarily mutual funds, held in charitable gift annuities aggregated $167,397 at December 31, 2013, and are reported at fair value in the statements of financial position. Included in liability under split-interest agreements is $94,752 at December 31, 2013, related to these agreements.

Beneficial interest in perpetual trusts include two separate trust funds that have been instructed to provide the Zoo Society with the unrestricted use of the Zoo Society’s respective portion of the trusts’ income in accordance with the trusts’ documents. The Zoo Society has an irrevocable right to receive the income from the trusts’ assets in perpetuity. The Zoo Society’s share of the trusts’ assets which had a market value on December 31, 2013 of $592,116 are included in the accompanying statements of financial position. The trusts’ investments are managed by external trustees designated by the donors. As such, the Zoo Society does not control the allocation of the trusts’ investments.

Restrictions on Net Assets Temporarily restricted net assets available for the following purposes at December 31: 2013 African Elephant Crossing Art conservation project Circle of Wildlife Conservation and science Zoo education and workforce development Marketing sponsorships Neotropical research

$284,215 70,412 701,021 459,912 288,929 20,504 67,473 $1,892,466

Temporarily restricted net assets released from donor restrictions by incurring expenditures satisfying the purpose restrictions specified by donors as follows during the years ended December 31: Conservation and science Zoo education and workforce development Neotropical research Marketing sponsorships Carousel Endowment Other capital campaign costs

2013 $147,181 340,106 35,567 120,184 777,923 2,350 93,886 $1,517,197

- 51 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Permanently restricted net assets aggregating $639,116 at December 31, 2013, consist of endowment fund assets to be held in perpetuity and beneficial interests in perpetual trusts.

Cleveland Metroparks The Zoo Society has historically provided support to the Metroparks for a variety of Zoo programs and functions. Support is summarized below for the year ended December 31: 2013 Metroparks agreement Education expenditures Conservation expenditures Special projects and board-designated expenditures Levy support and lobbying Senior safari Capital projects Other miscellaneous Zoo functions

$1,987,071 314,329 276,395 371,250 16,100 1,038 750,000 119,147 $3,835,330

In September 1997, the Zoo Society entered into an agreement with the Metroparks, with an initial term of seven years, which requires the Zoo Society to remit to the Metroparks a specific percentage equivalent to its aggregate annual membership contributions for membership categories where the dues are $125 or less. This percentage began at 55 percent in 1998 and progressively increased to a maximum level of 70 percent for 2002 and thereafter. The agreement has an ongoing annual renewal clause that grants the parties the ability to request renegotiation or cancellation. In the absence of specific action on behalf of either party, the agreement automatically renews for another year. The Metroparks recognizes the Society’s annual operating support to the Zoo’s operating budget to help finance key areas including, but not limited to: Zoo education; outreach programs; animal health, care, and welfare; horticultural and Zoo grounds beautification; and quality Zoo guest services.

Effective January 1, 2013, the Zoo Society amended its agreement with the District in order to enhance overall donor engagement with the Zoo Society’s and District’s joint mission. The terms of this agreement require guaranteed annual remittances equivalent to 72 percent of gross Zoo Society membership revenue. This total amount is composed of an amount equal to 65 percent of gross membership revenues as described in the previous agreement noted above, plus an amount equal to 7 percent of gross membership revenues to be used for mutually agreed priorities. These priorities are mission-relevant, have donor appeal, and advance the joint strategic plan. Under this agreement, the Zoo Society has recorded aggregate Zoo support of $1,987,071 for 2013. This agreement has been extended through December 31, 2014.

Included in “Amounts due to Cleveland Metropolitan Park District – Operating agreement” on the statements of financial position is $657,659 which is owed to the District under the above agreements at December 31, 2013.

In January 2013, the District approved participation in a Carousel Special Project Initiative, subsequently called Circle of Wildlife. This initiative outlines certain roles and responsibilities involving the Zoo Society. As part of its roles and responsibilities, the Zoo Society has conditionally committed to a fundraising initiative of up to $2,000,000 to be used for the purchase of the carousel, estimated costs for the pavilion to house the carousel, and other programmatic costs. Of the total fundraising initiative, up to $1,600,000 shall be committed to the District for the design, delivery, construction, and installation of the - 52 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

initiative. The remaining $400,000 shall be used to fund improvements, fundraising, marketing, and raising awareness of the Zoo and the Zoo Society. The commitment to the District is conditioned upon the District approving expenditures relating to this initiative. During 2013, the Zoo Society guaranteed $750,000 of this fundraising initiative for the construction of the carousel. The Zoo Society has submitted payment of $343,100 during the year ended December 31, 2013 for the construction of the carousel. The remaining liability payable to the District was $406,900 as of December 31, 2013 respectively. The Zoo Society intends to raise funds through a capital campaign project to fund any commitments related to this initiative. If the capital campaign does not raise sufficient funds to cover the commitments, the Zoo Society will use funds from the Sustaining Fund to fund the initiative. The Zoo Society has raised $1,434,414 as of December 31, 2013 for the construction, shipping, and installation of the Carousel. It is expected the remaining portion of this commitment will be recognized in 2014.

Allocation of Joint Costs For the year ended December 31, 2013, the Zoo Society incurred joint costs for information materials and activities that included fundraising appeals. The Zoo Society allocated these joint costs as follows: 2013 Fundraising Program Services

$126,220 210,366 $336,586

In-Kind Contributions For the year ended December 31, 2013, $341,721 as included as unrestricted special events support and revenues and expenses on the statements of activities.

Defined Contribution Plans Effective January 1, 1999, the Zoo Society adopted a 403(b) defined contribution plan (the “Plan”). The Plan covers all employees who work 1,000 hours or more during a calendar year. Each participant may elect to defer a portion of their annual compensation and the Zoo Society will make a matching contribution up to 3 percent of the participant’s compensation. During 2013, the amount of expense related to this plan was $63,664.

Effective January 1, 2005, the Zoo Society adopted a 457(b) executive deferred compensation plan (the “Executive Plan”). Participation in the plan is limited to those determined eligible by the Committee of Plan Trustees. Participants may elect annually to defer a portion of their compensation. The Committee may annually elect to provide employer contributions to the plan. Participants are immediately vested in their elected deferral amounts and vest in the employer contributions over a five-year service period or upon their death or permanent disability. During 2013, the amount of expense related to this Executive Plan was $20,000.

Related Party Transactions At December 31, 2013, $166,788 of pledges receivable and $1,110,949 of support and revenue, respectively, were from related parties, primarily trustee and trustee-related organizations.

The Zoo Society receives donated rent for its office facility from the Zoo. The amount of such rent cannot be reasonably estimated due to the unique nature of the space. Therefore, no amounts are recorded on the statements of activities for the year ended December 31, 2013.

- 53 -

Cleveland Metroparks Notes To The Basic Financial Statements For The Year Ended December 31, 2013

Subsequent Events On March 20, 2014, the Zoo Society conditionally committed to fund $300,000 to be used by the Metroparks to construct an Event Center overlooking the Waterfowl Lake. The commitment is contingent upon the Metroparks approving the construction of the Event Center. On March 27, 2014, the Metroparks approved the construction of the Event Center contingent upon renegotiation of a concessions contract between the Metroparks and a third-party supplier. The Zoo Society’s contingent commitment would be initially funded by the Sustaining Fund. The Zoo Society will conduct fund raising activities to obtain funds, by which, to replenish the Sustaining Fund and to match the Event Center challenge grant that is discussed previously. As of the date of this report, the Metroparks has not yet completed the renegotiation of their concessions contract with their third-party supplier.

On March 14, 2014, the Zoo Society received notification that the State of Ohio Capital Improvement Bill to be introduced March 21, 2014 would include an appropriation of $500,000 for the Zoo’s Savanna Ridge Enterprise Zone. The Capital Improvement Bill, including this appropriation, was approved by both the Ohio House and Senate and signed into law by the Governor of Ohio on April 2, 2014. Funds received by the Zoo Society, under the Capital Improvement Bill, will be passed-through to the Zoo upon receipt.

- 54 -

Fund Statements and Schedules

Fund Description - Fiduciary Fund

Fiduciary Fund Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into four classifications: pension trust funds, investment trust funds, private-purpose trust funds and agency funds. Trust funds are used to account for assets held by the Metroparks under a trust agreement for individuals, private organizations, or other governments and are therefore not available to support the Metroparks’ own programs. Agency funds are purely custodial (assets equal liabilities) and thus do not involve measurement of results of operations.

Agency Fund Flexible Benefits Plan Fund - This fund reflects resources that belong to the Metroparks’ employees to be used for medical expenses.

Statement of Changes in Assets and Liabilities Agency Fund For the Year Ended December 31, 2013

Beginning Balance 12/31/2012

Additions

Deductions

Ending Balance 12/31/2013

Flexible Benefits Plan Assets Cash and Cash Equivalents

$70,636

$260,750

$257,563

$73,823

Liabilities Deposits Held and Due to Others

$70,636

$260,750

$257,563

$73,823

- 55 -

Individual Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (Non-GAAP Basis) and Actual

- 56 -

Cleveland Metroparks Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Basis) and Actual General Fund For the Year Ended December 31, 2013

Budgeted Amounts

Original Revenues: Property Taxes Intergovernmental Donations and Sponsors Interest Golf Receipts Zoo Receipts Park Receipts Damages and Fines Other

Final

Actual

Variance with Final Budget Positive (Negative)

$48,728,408 14,033,462 1,738,593 31,187 3,523,491 5,306,340 1,096,477 41,537 1,024,197

$43,066,840 26,590,201 3,120,600 45,000 6,362,703 8,861,086 1,812,756 87,190 854,639

$43,774,898 25,089,075 2,531,383 53,425 6,035,881 9,089,972 1,878,309 71,154 1,152,191

$708,058 (1,501,126) (589,217) 8,425 (326,822) 228,886 65,553 (16,036) 297,552

75,523,692

90,801,015

89,676,288

(1,124,727)

12,226,124 3,662,029 4,840,361

13,222,279 3,668,539 5,259,134

11,947,120 3,481,971 4,681,718

1,275,159 186,568 577,416

Total Park Operations

20,728,514

22,149,952

20,110,809

2,039,143

Zoo Operations Salaries Fringe Benefits Operating Supplies/Other

10,909,011 3,195,715 7,301,198

11,001,991 3,197,229 7,213,173

10,164,219 2,941,050 6,170,740

837,772 256,179 1,042,433

Total Zoo Operations

21,405,924

21,412,393

19,276,009

2,136,384

Golf Course Salaries Fringe Benefits Operating Supplies/Other

3,294,782 902,693 2,591,970

3,205,386 921,367 2,704,015

2,802,478 757,697 2,333,475

402,908 163,670 370,540

Total Golf Course

6,789,445

6,830,768

5,893,650

937,118

Ranger Department Salaries Fringe Benefits Operating Supplies/Other

5,404,168 1,737,788 686,766

5,871,378 1,737,788 584,011

5,417,676 1,794,242 481,699

453,702 (56,454) 102,312

$7,828,722

$8,193,177

$7,693,617

$499,560 (continued)

Total Revenues Expenditures: Current: Park Operations Salaries Fringe Benefits Operating Supplies/Other

Total Ranger Department

- 57 -

Cleveland Metroparks Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Basis) and Actual General Fund (continued) For the Year Ended December 31, 2013

Budgeted Amounts

Original

Final

Actual

Variance with Final Budget Positive (Negative)

Administration Salaries Fringe Benefits Operating Supplies/Other

$5,754,397 1,931,424 7,772,894

$5,355,486 1,923,246 6,486,673

$6,604,224 1,668,536 6,355,055

($1,248,738) 254,710 131,618

Total Administration

15,458,715

13,765,405

14,627,815

(862,410)

9,701,476 1,841,541 813,593 117,063 1,495,615

10,811,869 1,884,996 1,693,498 409,863 3,765,520

8,640,697 1,505,755 1,077,591 398,788 2,487,938

2,171,172 379,241 615,907 11,075 1,277,582

13,969,288

18,565,746

14,110,769

4,454,977

86,180,608

90,917,441

81,712,669

9,204,772

7,963,619

8,080,045

Capital Outlay Parks Zoo Golf Rangers Administration Total Capital Outlay Total Expenditures Net Change in Fund Balance Fund Balance Beginning of Year Prior Year Encumbrances Appropriated Fund Balance End of Year

(10,656,916)

(116,426)

10,170,152

10,170,152

10,170,152

0

3,676,359

3,676,359

3,676,359

0

$3,189,595

$13,730,085

$21,810,130

$8,080,045

- 58 -

This page intentionally left blank.

Statistical Section This part of the Cleveland Metroparks comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Metroparks' overall financial health.

Page(s)

Contents Financial Trends These schedules contain trend information to help the reader understand how the Metroparks' financial performance and well-being have changed over time.

This information does not include the Cleveland Zoological Society, a dicretely presented component unit.

S2-S9

Revenue Capacity These schedules contain information to help the reader assess the Metroparks' most significant local revenue source, property taxes.

S10-S20

Economic and Demographic Information These schedules offer economic and demographic indicators to help the reader understand the environment within which the Metropark's financial activities take place.

S21-S23

Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Metroparks' financial report relates to the services the Metroparks provides and the activities it performs.

S24-S29

Sources: Unless otherwise noted, the information in these schedules is derived from the financial statements for the relevant year.

- S1 -

Cleveland Metroparks Net Position By Component Last Ten Years (Accrual Basis of Accounting)

2013

2012

2011

2010

2009

Governmental Activities Net Investment in Capital Assets Unrestricted

$324,708,556 27,252,748

$257,396,221 14,533,073

$238,046,207 27,186,827

$215,883,757 22,020,532

$200,227,409 32,704,664

Total Net Position

$351,961,304

$271,929,294

$265,233,034

$237,904,289

$232,932,073

- S2 -

2008

2007

2006

2005

2004

$190,177,210 34,497,211

$168,946,737 39,579,667

$160,850,477 29,562,564

$151,823,554 21,983,475

$141,023,349 9,581,897

$224,674,421

$208,526,404

$190,413,041

$173,807,029

$150,605,246

- S3 -

Cleveland Metroparks Changes in Net Position Last Ten Years (Accrual Basis of Accounting)

2013 Program Revenues Charges for Services: Park Operations Zoo Operations Golf Courses Ranger Department Administration Subtotal - Charges for Services Operating Grants and Contributions: Park Operations Zoo Operations Golf Courses Ranger Department Administration Subtotal - Operating Grants and Contributions Capital Grants and Contributions: Park Operations Zoo Operations Golf Courses Ranger Department Administration Subtotal - Capital Grants and Contributions

2012

2011

2010

2009

$1,882,538 9,091,643 6,055,428 69,471 0 17,099,080

$1,484,461 8,128,588 6,251,559 81,133 0 15,945,741

$843,480 8,800,702 5,026,038 52,372 415,585 15,138,177

$1,056,620 7,202,243 5,642,647 53,198 0 13,954,708

$1,102,345 7,513,920 5,886,833 55,500 0 14,558,598

363,907 1,264,170 0 20,097 1,290,356 2,938,530

465,606 762,915 63,480 5,605 606,124 1,903,730

2,402,426 467,933 0 20,079 202,486 3,092,924

185,189 170,203 0 29,341 207,157 591,890

602,669 1,429,820 0 44,090 1,532,694 3,609,273

62,518,526 0 0 0 269,375 62,787,901

15,827,384 3,600 1,022,000 0 0 16,852,984

3,870,155 1,398,637 19,099,160 0 60,000 24,427,952

2,236,506 3,553,576 0 0 26,818 5,816,900

859,400 1,255,691 0 0 0 2,115,091

Total Program Revenues

$82,825,511

$34,702,455

$42,659,053

$20,363,498

$20,282,962

Expenses Park Operations Zoo Operations Golf Courses Ranger Department Administration

$22,278,154 19,968,460 6,080,577 7,858,976 12,757,885

$24,777,188 21,862,586 6,273,862 7,406,040 11,347,881

$22,999,061 21,568,830 7,041,497 8,039,599 12,315,110

$23,308,538 22,017,328 6,729,996 8,062,677 11,462,899

$24,651,013 21,662,820 6,894,736 7,472,786 10,291,882

Total Program Expenses

68,944,052

71,667,557

71,964,097

71,581,438

70,973,237

Total Net Expense

13,881,459

(36,965,102)

(29,305,044)

(51,217,940)

(50,690,275)

$42,984,629

$37,933,471

$45,837,601

$46,490,136

$48,195,557

21,984,635 54,748 1,126,539

5,169,784 47,154 510,953

10,194,483 44,151 557,554

9,141,480 120,490 438,050

10,055,921 276,886 419,563

66,150,551

43,661,362

56,633,789

56,190,156

58,947,927

$80,032,010

$6,696,260

$27,328,745

$4,972,216

$8,257,652

General Revenues and Other Changes in Net Position Property Taxes Levied For General Purposes Grants and Entitlements not Restricted to Specific Programs Investment Earnings Miscellaneous Total General Revenues and Other Changes in Position Total Change in Net Position

- S4 -

2008

2007

2006

2005

2004

$1,074,125 7,321,563 5,736,129 54,079 0 14,185,896

$1,063,905 7,641,496 5,931,897 86,801 0 14,724,099

$1,039,166 6,870,987 5,548,949 77,881 0 13,536,983

$1,040,646 6,170,397 5,570,313 85,086 0 12,866,442

$975,305 7,137,528 5,447,737 52,379 0 13,612,949

258,057 612,235 0 18,879 656,285 1,545,456

174,090 413,026 0 12,736 442,743 1,042,595

371,945 420,018 0 0 434,437 1,226,400

397,360 374,940 8,650 0 138,597 919,547

97,549 136,736 0 1,560 236,995 472,840

1,480,201 0 0 0 0 1,480,201

2,330,263 12,935 0 0 0 2,343,198

1,836,952 0 0 0 0 1,836,952

1,865,141 0 0 0 1,005 1,866,146

0 227,668 0 0 0 227,668

$17,211,553

$18,109,892

$16,600,335

$15,652,135

$14,313,457

$23,028,607 20,634,338 6,790,994 7,413,643 10,328,953

$22,243,566 19,642,729 6,669,339 7,109,441 10,217,480

$20,549,748 19,318,945 6,307,379 7,079,239 9,201,273

$20,158,786 15,861,777 5,782,194 6,393,974 9,915,298

$18,778,385 15,988,629 6,209,354 6,855,859 8,907,191

68,196,535

65,882,555

62,456,584

58,112,029

56,739,418

(50,984,982)

(47,772,663)

(45,856,249)

(42,459,894)

(42,425,961)

$46,664,587

$50,191,485

$51,562,461

$51,680,119

$33,801,710

12,742,984 976,710 384,095

12,383,258 1,673,646 241,144

9,333,035 1,299,475 267,290

12,225,924 616,503 1,139,131

6,878,708 203,684 212,545

60,768,376

64,489,533

62,462,261

65,661,677

41,096,647

$9,783,394

$16,716,870

$16,606,012

$23,201,783

($1,329,314)

- S5 -

Cleveland Metroparks Fund Balance, Governmental Fund Last Ten Years (Modified Accrual Basis of Accounting)

2013 General Fund Nonspendable Restricted Committed Assigned Unassigned Reserved Unreserved Total Governmental Fund Balance

$1,365,611 0 1,212,629 2,338,839 21,212,689 N/A N/A $26,129,768

2012 $1,756,268 0 811,219 1,607,514 7,646,792 N/A N/A $11,821,793

Note: During 2010, the Metroparks implemented GASB 54.

- S6 -

2011 $1,566,651 0 0 2,278,365 10,697,173 N/A N/A $14,542,189

2010 $1,142,342 0 0 2,216,282 8,848,873 N/A N/A $12,207,497

2009 N/A N/A N/A N/A N/A $2,194,591 20,903,307 $23,097,898

2008 N/A N/A N/A N/A N/A $2,966,900 24,154,101 $27,121,001

2007 N/A N/A N/A N/A N/A $6,234,128 26,523,511 $32,757,639

2006 N/A N/A N/A N/A N/A $2,710,751 21,669,604 $24,380,355

- S7 -

2005 N/A N/A N/A N/A N/A $903,269 15,999,555 $16,902,824

2004 N/A N/A N/A N/A N/A $905,936 7,366,422 $8,272,358

Cleveland Metroparks Changes in Fund Balance, Governmental Fund Last Ten Years (Modified Accrual Basis of Accounting)

2013 Revenues Property Taxes Intergovernmental Donations and Sponsors Interest Golf Receipts Zoo Receipts Park Receipts Damages and Fines Other

2012

2011

2010

2009

$43,774,898 26,552,895 2,531,383 54,748 6,037,265 9,091,127 1,878,336 69,471 1,114,254

$45,221,267 10,667,895 1,903,730 47,154 6,251,559 8,128,588 1,484,461 81,133 510,953

$44,894,023 14,086,691 1,933,057 44,151 5,026,038 8,800,702 1,207,123 104,314 557,554

$45,941,546 11,082,919 4,175,206 120,490 5,406,180 7,097,080 1,367,478 83,970 438,050

$46,540,671 9,289,978 4,864,964 276,886 5,780,845 7,528,225 1,156,853 92,675 419,563

Total Revenues

91,104,377

74,296,740

76,653,653

75,712,919

75,950,660

Expenditures Current: Park Operations Zoo Operations Golf Course Ranger Department Administration Capital Outlay

20,425,404 19,112,247 6,017,368 7,689,063 12,906,329 10,645,991

18,448,630 18,852,908 5,896,692 7,125,113 10,675,899 16,017,894

17,467,667 18,243,758 6,479,798 7,862,664 12,547,485 11,717,589

18,563,889 19,515,046 6,343,827 7,631,461 11,025,181 23,523,916

17,884,242 19,317,551 6,462,704 7,267,992 10,141,892 18,899,382

Total Expenditures

76,796,402

77,017,136

74,318,961

86,603,320

79,973,763

Excess of Revenues Over (Under) Expenditures

14,307,975

(2,720,396)

2,334,692

(10,890,401)

(4,023,103)

Other Financing Source Sale of Capital Assets

0

Net Change in Fund Balance

$14,307,975

0 ($2,720,396)

- S8 -

0 $2,334,692

0 ($10,890,401)

0 ($4,023,103)

2008

2007

2006

2005

2004

$47,343,247 11,940,112 3,025,657 976,710 5,736,129 7,321,563 1,074,125 54,079 384,095

$49,593,381 15,088,400 909,747 1,673,646 5,931,897 7,641,496 1,063,905 86,801 241,144

$51,008,511 11,897,170 1,075,176 1,299,475 5,548,949 6,870,987 1,039,166 77,881 267,290

$50,037,821 11,515,633 1,327,931 616,503 5,570,313 6,170,397 1,040,646 85,086 1,139,131

$33,975,387 6,628,116 700,508 203,684 5,447,307 7,137,528 975,255 52,379 212,545

77,855,717

82,230,417

79,084,605

77,503,461

55,332,709

19,235,045 18,716,585 6,444,686 7,255,010 10,090,187 21,750,842

19,276,373 18,214,399 6,343,573 6,954,429 9,497,351 13,567,008

16,570,492 17,149,224 5,917,687 6,840,627 9,081,582 15,827,147

16,658,828 15,455,102 5,788,395 6,355,757 9,779,131 14,895,796

14,613,128 13,309,315 5,104,129 6,042,763 8,539,874 14,961,196

83,492,355

73,853,133

71,386,759

68,933,009

62,570,405

(5,636,638)

8,377,284

7,697,846

8,570,452

(7,237,696)

0

0

60,014

$8,377,284

$7,697,846

$8,630,466

0 ($5,636,638)

- S9 -

26,445 ($7,211,251)

Cleveland Metroparks Assessed Valuation and Estimated Actual Values of Taxable Property Last Ten Years

Real Property

Tangible Personal Property

Assessed Value Collection Year

Residential/ Agricultural

Commercial Industrial/PU

Estimated Actual Value

Public Utility Estimated Assessed Actual Value Value

2013

$18,763,098,070

$8,382,734,230

$77,559,520,857

$846,193,770

$961,583,830

2012

20,581,061,860

8,810,837,260

83,976,854,629

702,587,750

798,395,170

2011

20,659,548,820

8,780,635,590

84,114,812,600

677,485,670

769,870,080

2010

20,668,135,030

8,615,061,710

83,666,276,400

658,665,770

748,483,830

2009

22,356,230,170

8,442,590,380

87,996,630,143

619,305,690

703,756,466

2008

22,219,276,910

8,458,014,540

87,649,404,143

593,166,589

674,052,942

2007

30,948,867,310

7,153,289,070

108,863,303,943

851,384,190

967,482,034

2006

30,654,295,600

7,231,170,150

108,244,187,857

847,569,150

963,146,761

2005

27,562,736,680

6,560,777,510

97,495,754,829

949,670,330

1,079,170,830

2004

25,218,560,610

6,648,693,860

91,049,298,486

953,145,140

1,083,119,477

Real property is reappraised every six years with a State mandated update of the current market value in the third year following each reappraisal.

The assessed value of real property (including public utility real property) is 35 percent of estimated true value. The assessed value of public utility personal property ranges from 25 percent of true value for railroad property to 88 percent for electric transmission and distribution property. General business tangible personal property was assessed in previous years at 25 percent for machinery and equipment and 23 percent for inventories. General business tangible personal property tax was phased out beginning in 2006.

The tangible personal property values associated with each year are the values that, when multiplied by the applicable rates, generated the property tax revenue billed in that year. For real property, the amounts generated by multiplying the assessed values by the applicable rates would be reduced by the 10 percent, 2 1/2 percent and homestead exemptions before being billed. Beginning in the 2006 collection year, the 10 percent rollback for commercial/industrial property has been eliminated.

Source: Cuyahoga County, Ohio; County Fiscal Officer

- S10 -

Tangible Personal Property General Business Estimated Assessed Actual Value Value

Total Estimated Actual Value

Assessed Value

$0

$0

$27,992,026,070

$78,521,104,687

0

0

30,094,486,870

84,775,249,799

0

0

30,117,670,080

0

0

383,468,309

Ratio

Weighted Average

$2.75

$2.75

35.50

1.85

1.82

84,884,682,680

35.48

1.85

1.81

29,941,862,510

84,414,760,230

35.47

1.85

1.81

3,067,746,472

31,801,594,549

91,768,133,081

34.65

1.85

1.67

729,256,789

5,834,054,312

31,999,714,828

94,157,511,396

33.99

1.85

1.67

1,926,857,995

10,276,575,973

40,880,398,565

120,107,361,949

34.04

1.85

1.67

1,925,823,540

8,373,145,826

40,658,858,440

117,580,480,444

34.58

1.85

1.85

2,390,355,929

10,392,851,865

37,463,540,449

108,967,777,523

34.36

1.85

1.70

2,814,568,566

11,727,369,025

35,634,968,176

103,859,786,988

34.31

1.55

1.17

- S11 -

35.65 %

Full Tax Rate

Cleveland Metroparks Property Tax Rates - Direct and Overlapping Governments (1) (Per $1,000 of Assessed Valuation) Last Seven Years (2)

2013 Gross Rate

2012 Effective Rate

Gross Rate

2011 Effective Rate

Gross Rate

2010 Effective Rate

Gross Rate

Effective Rate

Voted Millage by Levy 2004 General Operating Effective Millage Rates Residential/Agricultural Commercial/Industrial General Business and Public Utility

$2.7500 2.7500 2.7500

$2.7046 2.7046 2.7046

$1.8500 1.8500 1.8500

Weighted Average Tax Rate Cuyahoga County

$2.7500

$0.0000

$1.8200

NA

$1.8100

NA

$1.8100

NA

$14.0500

$13.9495

$13.2200

$12.7846

$13.3200

$12.8400

$13.3200

$12.8457

14.9000 4.0000 21.7000 21.9000 16.8000 8.2100 10.4000 4.7500 5.9000 12.7000 12.9000 12.7000 13.6000 11.8000 27.0000 4.0000 2.2000 17.4000 11.5000 15.5000 10.0000 5.4500 13.3000 8.2000 13.3500 7.1000 10.0000 9.5000 18.1000 10.9000 11.2000 9.6000 3.8000 16.3500 9.8000 13.2000 9.7000 $9.5200

14.9000 4.0000 21.7000 21.9000 13.3138 8.2100 7.7918 4.6694 5.9000 12.7000 12.9000 12.7000 9.9585 11.7271 27.0000 4.0000 2.2000 17.4000 11.5000 15.5000 10.0000 4.8817 13.3000 6.7482 10.3201 6.8871 10.0000 9.3947 15.7130 10.9000 11.2000 9.6000 3.7554 16.1215 7.8240 13.2000 6.8517 $9.5200

14.9000 4.0000 21.7000 21.9000 17.2000 8.2100 9.4000 4.7500 5.9000 12.7000 12.9000 12.7000 13.6000 11.8000 24.3000 4.0000 2.2000 17.4000 11.5000 15.5000 10.0000 5.4500 13.3000 8.2000 14.4500 7.1000 10.0000 9.5000 18.1000 10.9000 9.5000 9.9000 3.8000 13.1000 9.9000 13.2000 9.7000 $9.6000

14.9000 4.0000 21.7000 21.9000 13.1350 8.2100 6.3164 4.6466 5.9000 12.7000 12.9000 12.7000 6.3749 11.5700 24.3000 4.0000 2.2000 17.4000 11.5000 15.5000 10.0000 4.6881 13.3000 5.9175 11.1585 6.6287 10.0000 9.4933 15.5444 10.9000 9.2063 9.9000 3.6580 13.1000 7.4089 13.2000 6.6205 $9.6000

14.9000 4.0000 21.7000 21.9000 17.2000 8.2100 9.4000 4.7500 5.9000 12.7000 12.9000 12.7000 13.6000 11.8000 24.7000 4.0000 2.6000 17.4000 11.5000 15.5000 10.0000 5.4500 13.3000 8.2000 14.2500 7.1000 10.0000 9.5000 18.1000 10.9000 9.2000 9.9000 3.9000 13.1000 9.9000 13.2000 9.7000 $9.6000

14.9000 4.0000 21.7000 21.9000 13.1343 8.2100 6.3153 4.6459 5.9000 12.7000 12.9000 12.7000 6.3560 11.5750 24.7000 4.0000 2.6000 17.4000 11.5000 15.4926 10.0000 4.6878 13.3000 5.9129 10.9706 6.6274 10.0000 9.4989 15.5394 10.9000 9.2000 9.9000 3.7565 13.1000 7.3637 13.2000 5.5887 $9.6000

14.9000 4.0000 21.7000 13.0000 17.2000 8.2100 9.4000 4.7500 5.9000 12.7000 12.9000 12.7000 15.6000 11.8000 28.7000 4.0000 2.8000 17.4000 11.5000 15.5000 10.0000 5.4500 13.3000 8.2000 15.2000 7.1000 10.0000 9.5000 17.0000 10.9000 8.2000 9.9000 3.9000 14.9000 9.9000 13.2000 9.7000 $9.6000

14.9000 4.0000 21.7000 13.0000 13.1337 8.2100 6.3157 4.6458 5.9000 12.7000 12.9000 12.7000 6.8572 11.5743 28.7000 4.0000 2.8000 17.4000 11.5000 15.5000 10.0000 4.6877 13.3000 5.9117 9.9418 6.6267 10.0000 9.5000 14.4382 10.9000 8.8251 9.9000 3.7563 13.2321 7.3603 13.2000 5.5887 $9.6000

Overlapping Rates by Tax District Cuyahoga County Cities Bay Village Beachwood Bedford Bedford Heights Berea Brecksville Broadview Heights Brook Park Brooklyn Cleveland Cleveland Heights East Cleveland Euclid Fairview Park Garfield Heights Highland Heights Independence Lakewood Lyndhurst Maple Heights Mayfield Heights Middleburg Heights North Olmsted North Royalton Olmsted Falls Parma Parma Heights Pepper Pike Richmond Heights Rocky River Seven Hills Shaker Heights Solon South Euclid Strongsville University Heights Warrensville Heights Westlake

- S12 -

$1.8188 1.7354 1.8500

$1.8500 1.8500 1.8500

$1.8106 1.7243 1.8500

$1.8500 1.8500 1.8500

$1.8068 1.7249 1.8500

2009 Gross Rate

2008 Effective Rate

Gross Rate

2007 Effective Rate

Gross Rate

Effective Rate

$1.8500 1.8500 1.8500

$1.6698 1.7171 1.8500

$1.8500 1.8500 1.8500

$1.6720 1.7125 1.8500

$1.8500 1.8500 1.8500

$1.6715 1.7187 1.8500

$1.6700

NA

$1.6700

NA

$1.6700

NA

$13.3200

$12.6607

$13.4200

$11.8688

$13.4200

$11.8688

14.9000 4.0000 12.8000 13.0000 17.2000 8.5000 9.4000 4.7500 6.9000 12.7000 12.9000 12.7000 15.6000 11.8000 23.3000 4.0000 2.8000 17.4000 11.5000 15.5000 10.0000 5.4500 13.2000 8.2000 15.7000 7.1000 10.2000 9.5000 17.0000 10.9000 9.2000 9.9000 4.1000 14.9000 9.9000 13.2000 9.7000 $9.6000

14.9000 4.0000 12.8000 13.0000 13.0431 8.5000 6.2737 4.6775 6.9000 12.7000 12.9000 12.7000 6.5565 11.5054 23.3000 4.0000 2.8000 17.4000 11.5000 15.5000 10.0000 4.6686 13.2000 5.7698 10.2462 6.5166 10.2000 9.0676 14.3041 10.9000 8.6128 9.9000 3.9417 13.1066 7.2089 13.2000 5.4808 $9.6000

14.9000 4.0000 12.8000 13.0000 16.2000 8.6000 9.4000 4.7500 6.9000 12.7000 12.9000 12.7000 15.6000 11.8000 21.9000 4.0000 2.8000 17.4000 11.5000 15.5000 10.0000 5.4500 13.2000 8.2000 16.5000 7.1000 10.2000 9.5000 17.0000 10.9000 9.2000 9.9000 4.1000 14.7000 10.1000 13.2000 13.2000 $9.8000

14.9000 4.0000 12.8000 13.0000 12.0540 8.6000 6.2731 4.6469 6.9000 12.7000 12.9000 12.7000 6.5540 11.5044 21.9000 4.0000 2.8000 17.4000 11.5000 14.7784 10.0000 4.6686 13.2000 5.7708 9.5842 6.5160 10.2000 9.0548 14.3033 10.9000 8.6075 9.9000 3.9411 12.9048 6.1886 13.2000 6.5850 $9.8000

14.9000 4.0000 12.8000 13.0000 16.2000 8.6000 9.4000 4.8000 6.9000 12.7000 13.0000 12.7000 15.6000 11.8000 21.9000 4.0000 2.8000 17.4000 11.0000 15.5000 10.0000 5.4500 13.2000 8.2000 16.5000 5.1000 10.2000 9.5000 14.0000 10.9000 9.3000 9.9000 4.1000 14.7000 10.1000 13.2000 13.2000 $9.8000

14.9000 4.0000 12.8000 13.0000 12.0669 8.6000 6.2725 4.6753 6.9000 12.7000 13.0000 12.7000 6.5522 11.5041 21.9000 4.0000 2.8000 17.4000 110.0000 14.7776 10.0000 4.6685 13.2000 5.7741 9.5844 4.5157 10.2000 9.0533 11.3082 10.9000 8.7096 9.9000 3.9405 12.9037 6.1981 13.2000 6.5906 $9.8000 (continued)

- S13 -

Cleveland Metroparks Property Tax Rates - Direct and Overlapping Governments (1) (Continued) (Per $1,000 of Assessed Valuation) Last Six Years (2)

2013 Gross Rate

2012 Effective Rate

Gross Rate

2011 Effective Rate

Gross Rate

2010 Effective Rate

Gross Rate

Effective Rate

Villages Bentleyville Bratenahl Chagrin Falls Cuyahoga Heights Gates Mills Glenwillow Highland Hills Hunting Valley Linndale Mayfield Moreland Hills Newburgh Heights North Randall Oakwood Orange Valley View Walton Hills Woodmere

$8.9000 16.0000 9.5000 4.4000 14.4000 3.3000 20.7000 5.1000 2.8000 7.3000 7.3000 31.8000 4.8000 3.8000 7.1000 6.7000 0.3000 4.3000

$7.8576 16.0000 9.4644 4.4000 14.4000 3.3000 10.9855 5.1000 2.8000 4.5535 7.3000 30.5869 4.6048 3.8000 7.1000 6.7000 0.3000 4.3000

$8.9000 16.0000 11.2000 4.4000 14.4000 3.3000 20.7000 5.1000 2.8000 7.8000 7.3000 23.1000 4.8000 3.8000 7.1000 6.7000 0.3000 4.3000

$6.9159 15.4864 11.1847 4.4000 12.7636 3.3000 11.8205 5.1000 2.8000 4.1678 7.3000 22.7248 4.2230 3.8000 7.1000 6.7000 0.3000 4.3000

$8.9000 16.0000 11.2000 4.4000 14.4000 3.3000 20.7000 5.1000 2.8000 7.3000 7.3000 23.1000 4.8000 3.8000 7.1000 6.7000 0.3000 4.3000

$7.4721 15.9972 11.1828 4.4000 12.7249 3.3000 11.4924 5.1000 2.8000 4.1656 7.3000 22.6790 4.2148 3.8000 7.1000 6.7000 0.3000 4.3000

$8.9000 15.5000 11.2000 4.4000 14.4000 3.3000 20.7000 5.1000 2.8000 7.3000 7.3000 19.5000 4.8000 3.8000 7.1000 6.7000 0.3000 4.3000

$7.4705 12.9000 11.2000 4.4000 12.7194 3.3000 11.4894 5.1000 2.8000 4.1649 7.3000 17.9780 4.2131 3.8000 7.1000 6.7000 0.3000 4.3000

Townships Chagrin Falls Olmsted

0.0400 23.5000

0.0400 15.6461

0.0400 23.5000

0.0400 13.8235

0.0400 23.5000

0.0400 13.8021

0.0400 21.5000

0.0400 11.7057

116.8100 86.4000 70.8200 78.8000 77.2000 60.1000 115.6000 149.5900 79.8000 35.7000 94.1000 100.7000 96.4700 78.2600 36.0000 123.2300 81.2000 84.2200 91.4000 65.7000 102.2000 91.1000 75.7000 87.9000 89.5500 180.2300 82.2000 107.4000 81.6800 91.8000 $70.1000

62.5437 48.6513 49.0798 51.5507 43.2930 48.9944 61.8377 92.7788 60.1246 32.5011 70.9317 86.3873 61.1419 65.6750 36.0000 80.9159 62.2855 50.2855 57.6284 41.4324 56.3994 53.2603 57.2533 50.7616 64.6202 117.4225 59.3596 63.7761 43.1773 69.7819 $40.6811

129.7500 86.4000 71.3000 75.0000 77.2000 47.2000 107.7000 143.7000 64.8000 27.8000 93.0000 88.4000 97.6000 56.8600 34.9000 115.4000 74.2000 78.3200 91.4000 65.7000 101.6000 91.1000 73.0000 82.6000 84.3500 180.1300 82.2000 101.5000 80.9800 89.0000 $70.1000

67.8734 41.1621 37.5823 38.7027 39.1911 34.3550 47.5708 71.7220 31.6742 21.4861 40.1932 53.3148 56.8256 42.9977 32.9393 56.6893 48.8997 40.1875 52.5975 41.0277 54.1899 47.0164 49.3839 41.5035 44.1296 86.4536 48.3345 55.4209 40.0776 50.7837 $36.7691

114.9500 86.4000 72.5000 74.9000 77.2000 47.2000 107.7000 136.8000 64.8000 28.8000 93.0000 89.9000 97.6000 56.3000 31.9000 115.4000 71.9000 74.2000 91.4000 65.8000 101.7000 86.1000 66.1000 82.6000 84.3000 180.1300 82.2000 101.6000 81.1900 89.5000 $70.1000

52.9108 41.0169 38.6990 38.5574 39.1176 34.2129 47.3264 64.3156 31.5069 22.4628 39.9056 54.4667 56.7442 42.1197 29.8969 56.4020 47.4149 49.7767 52.5281 41.0839 54.1712 41.8247 42.4584 41.3640 43.9489 85.7364 48.1861 55.3403 40.2545 51.1160 $36.6681

108.8500 83.9000 72.5000 75.0000 77.3000 47.0000 108.6000 136.8000 64.8000 29.0000 92.5000 89.9000 97.4000 56.5000 32.0000 107.9000 71.9000 78.3200 83.5000 65.5000 93.0000 86.0000 66.0000 82.6000 82.7000 170.6000 75.5000 101.6000 81.2000 90.8000 $66.7000

46.7716 38.4659 38.6966 38.6450 39.1700 35.0838 48.2245 64.1928 31.4601 22.6478 39.2650 54.4663 56.5150 42.3215 30.0066 48.8809 47.4149 40.0985 44.5988 41.1462 45.4561 41.6958 42.3449 41.3343 42.3267 76.1047 41.4665 50.6368 40.3511 51.9727 $33.2708

School Districts Bay Village City Beachwood City Bedford City Berea City Brecksville-Broadview Heights City Brooklyn City Chagrin Falls Exempted Village Cleveland Heights - University Heights City Cleveland Municipal Cuyahoga Heights Local East Cleveland City Euclid City Fairview Park City Garfield Heights City Independence Local Lakewood City Maple Heights City Mayfield City North Olmsted City North Royalton City Olmsted Falls City Orange City Parma City Richmond Heights Local Rocky River City Shaker Heights City Solon City South Euclid - Lyndhurst City Strongsville City Warrensville City Westlake City

- S14 -

2009 Gross Rate

2008 Effective Rate

Gross Rate

2007 Effective Rate

Gross Rate

Effective Rate

$8.9000 15.5000 11.2000 4.4000 14.4000 3.3000 20.7000 5.1000 2.8000 7.3000 7.3000 19.5000 4.8000 3.8000 7.1000 7.1000 0.3000 4.3000

$7.4564 14.1134 8.8401 4.4000 12.1300 3.3000 12.8525 5.1000 2.8000 4.1547 7.3000 16.8366 4.1723 3.8000 7.1000 5.3339 0.3000 4.3000

$8.9000 14.0000 15.6000 4.4000 14.4000 3.3000 20.7000 5.1000 2.8000 7.3000 7.3000 19.5000 4.8000 3.8000 7.1000 7.1000 0.3000 4.3000

$7.4530 11.6432 13.2379 4.4000 12.0951 3.3000 12.8036 5.1000 2.8000 4.1546 7.3000 16.8060 4.1714 3.8000 7.1000 5.3333 0.3000 4.3000

$8.9000 14.0000 15.6000 4.4000 14.4000 3.3000 20.7000 5.1000 2.8000 7.3000 7.3000 19.5000 4.8000 3.8000 7.1000 7.1000 0.3000 4.3000

$7.4528 10.9449 13.2416 4.4000 12.0862 3.3000 12.9625 5.1000 2.8000 4.1541 7.3000 16.7973 4.1692 3.8000 7.1000 5.3333 0.3000 4.3000

0.0400 21.5000

0.0400 11.0654

0.0400 21.5000

0.0400 11.0986

0.0400 21.5000

0.0400 11.0963

108.8500 83.9000 67.6000 74.9000 77.1000 46.4000 108.6000 136.7000 64.8000 28.9000 92.1000 85.2000 96.1000 54.6000 31.4000 107.2000 63.4000 78.3200 83.5000 58.8000 91.9000 86.0000 65.1000 78.6000 82.7000 170.6000 75.3000 96.2000 81.2000 90.1000 $66.5000

45.8465 36.3500 30.9966 35.9563 37.2338 32.9276 47.8160 60.2978 29.0766 22.4516 35.4764 46.1446 51.9219 40.1189 29.2735 45.9650 34.4302 38.1502 41.1735 33.7000 41.6942 40.1499 38.8681 33.6185 40.8212 71.0032 39.9335 445.2685 38.2267 49.6729 $31.7454

108.8500 82.3000 67.6000 74.9000 77.1000 39.5000 108.3000 136.7000 64.8000 28.9000 92.1000 78.2000 96.0000 54.5000 31.5000 106.9000 62.9000 71.4200 83.5000 59.6000 91.8000 86.0000 61.4000 78.6000 77.1000 170.3000 75.3000 96.2000 81.3000 90.1000 $66.5000

45.7500 34.7835 31.0146 35.9966 37.1756 26.0149 47.4618 60.1573 29.0506 22.4422 35.4561 39.1132 51.7746 40.0213 29.3471 45.5754 36.1949 31.2351 41.1462 34.5000 41.6553 40.0270 35.1460 33.5915 35.1664 70.4688 39.8732 45.2685 38.3385 49.6674 $31.7267

109.6500 82.3000 67.6000 74.9000 77.2000 39.5000 100.4000 129.6000 64.8000 28.8000 92.1000 78.2000 95.6000 54.5000 31.5000 106.6000 62.9000 71.7000 77.0000 59.8000 89.8000 86.0000 64.7000 78.6000 77.2000 170.3000 75.3000 96.3000 74.8000 90.2000 $66.5000

46.5149 34.8002 31.0134 36.0527 37.2513 26.0062 39.6005 53.0145 29.0028 22.3479 35.4148 39.0934 51.3583 40.0080 28.5896 45.2304 36.9111 31.5673 34.6098 34.6999 39.6874 40.0179 38.4394 33.7406 35.2625 70.3573 39.8195 45.3339 31.9410 49.8122 $31.7280 (continued)

- S15 -

Cleveland Metroparks Property Tax Rates - Direct and Overlapping Governments (1) (Continued) (Per $1,000 of Assessed Valuation) Last Seven Years (2)

2013 Gross Rate Joint Vocational Schools Cuyahoga Valley Polaris Special Districts Chagrin Falls Township Fire District Cleveland Heights - University Heights Public Library Cleveland Library Cleveland Port Authority Cuyahoga County Library East Cleveland Library Euclid Library Lakewood Library Rocky River Library Shaker Heights Library Westlake Library

2012 Effective Rate

Gross Rate

2011 Effective Rate

Gross Rate

2010 Effective Rate

Gross Rate

Effective Rate

$2.0000 2.4000

$2.0000 2.1401

$2.0000 2.4000

$2.0000 2.0413

$2.0000 2.4000

$2.0000 2.1821

$2.0000 2.4000

$2.0000 2.0076

0.8000 7.8000 6.8000 0.1300 2.5000 7.0000 4.0000 3.5000 6.1000 4.0000 2.8000

0.8000 6.3169 6.2210 0.1106 2.5000 6.9777 4.0000 2.8055 5.4189 4.0000 2.8000

0.8000 7.8000 6.8000 0.1300 2.5000 7.0000 4.0000 3.5000 6.1000 4.0000 2.8000

0.8000 5.7108 6.2210 0.1033 2.5000 6.4283 4.0000 2.3751 5.0526 4.0000 2.8000

0.8000 7.8000 6.8000 0.1300 2.5000 7.0000 4.0000 3.5000 6.1000 4.0000 2.8000

0.8000 5.6651 6.2177 0.1029 2.5000 6.3968 4.0000 2.3552 5.0286 4.0000 2.7737

0.8000 7.8000 6.8000 0.1300 2.5000 7.0000 3.5000 35.0000 6.1000 4.0000 2.8000

0.8000 5.6651 6.2168 0.1027 2.5000 6.3814 3.4743 2.3537 50.2450 4.0000 2.8000

(1) Based on lower of Residential/Agricultural and Commercial/Industrial effective rates.

(2) Information prior to 2007 not available.

Note: The rates presented for a particular calendar year are the rates that, when applied to the assessed values presented in the Assessed Value Table, generated the property tax revenue billed in that year.

Basic property tax rates may be increased only by a majority vote of the entity's residents.

Overlapping rates are those of local and county governments that apply to property owners within the entity. Real property tax rates are reduced so that inflationary increases in value do not generate additional revenue.

Source: Ohio Department of Taxation, Cuyahoga County Fiscal Officer

- S16 -

2009 Gross Rate

2008 Effective Rate

Gross Rate

2007 Effective Rate

Gross Rate

Effective Rate

$2.0000 2.4000

$2.0000 2.0000

$2.0000 2.4000

$2.0000 2.0000

$2.0000 2.4000

$2.0000 2.0000

0.8000 7.8000 6.8000 0.1300 2.5000 7.0000 3.5000 3.5000 6.1000 4.0000 2.8000

0.8000 5.3894 6.1703 0.0947 2.5000 6.0101 3.1234 2.1997 4.7476 4.0000 2.8000

0.8000 5.9000 6.8000 0.1300 2.0000 7.0000 3.5000 3.5000 6.1000 4.0000 2.5000

0.8000 3.4793 4.9006 0.0946 1.8086 6.0080 3.1204 2.1935 4.7376 3.1836 2.1276

0.8000 5.9000 6.8000 0.1300 2.0000 4.0000 3.5000 3.5000 6.1000 4.0000 2.5000

0.8000 3.4762 4.8883 0.0946 1.8093 3.0034 3.1185 2.1904 4.7368 3.1779 2.1278

- S17 -

Cleveland Metroparks Property Tax Levies And Collections

Last Ten Years

Collection Year

Current Tax Levy

Current Tax Collections

2013

$50,747,127

$46,620,706

2012

53,647,961

48,470,731

2011

53,363,730

2010

Percent of Current Tax Collections to Current Tax Levy

Delinquent Tax Collections

Total Tax Collections (1)

$2,140,415

$48,761,121

90.35

2,563,887

51,034,618

48,633,300

91.14

2,079,658

50,712,958

53,256,253

48,907,335

91.83

2,216,020

51,123,355

2009

52,769,307

48,792,957

92.46

2,134,819

50,927,776

2008

53,719,872

49,979,603

93.04

2,532,688

52,512,291

2007

55,092,213

51,169,706

92.88

2,721,084

53,890,790

2006

55,821,306

52,346,287

93.77

2,357,187

54,703,474

2005

56,307,611

52,867,967

93.89

2,344,607

55,212,574

2004

36,129,543

34,633,764

95.86

1,756,698

36,390,462

91.87 %

Source: Cuyahoga County, Ohio; County Fiscal Officer Note:

The County's current operating system does not track delinquency tax collections by tax year.

Outstanding delinquencies are tracked in total by the date the parcel is first certified delinquent.

Penalties and interest are applied to the total outstanding delinquent balance. The presentation will be updated as new information becomes available.

- S18 -

Percent of Total Tax Collections to Current Tax Levy

Accumulated Outstanding Delinquent Taxes

Percentage of Delinquent Taxes to Total Tax Levy

96.09%

$10,948,160

21.57%

95.13

12,150,020

22.65

95.03

11,356,409

21.28

96.00

10,404,139

19.54

96.51

9,862,135

18.69

97.75

8,211,600

15.29

97.82

8,893,055

16.14

98.00

8,295,878

14.86

98.06

7,485,180

13.29

100.72

5,305,080

14.68

- S19 -

Cleveland Metroparks Principal Real Property Taxpayers 2013 and 2004

2013

Taxpayer

Real Property Assessed Valuation

Cleveland Electric Illuminating Company Cleveland Clinic Foundation East Ohio Gas Company Cuyahoga County, Ohio Key Center Properties, LLC WEA Southpark, LLC American Transmission Systems Beachwood Place, LTD University Hospital Health System, Incorporated Eaton Corporation

Percentage of Total Assessed Valuation

$331,747,510 193,532,080 101,997,810 81,381,930 80,559,150 75,587,220 74,149,070 65,324,350 62,776,320 53,413,820

1.22 % 0.71 0.38 0.30 0.30 0.28 0.27 0.24 0.23 0.20

Total

$1,120,469,260

4.13 %

Total Real Property Assessed Valuation

$27,145,832,300 2004

Taxpayer

Real Property Assessed Valuation

Percentage of Total Assessed Valuation

Cleveland Electric Illuminating Company Ohio Bell Telephone Company City of Cleveland American Transmission Systems East Ohio Gas Company Cleveland Financial Association Beachwood Place, LTD Legacy Village Investors, LLC City of Cleveland NPW Limited Partnership

$212,356,110 182,419,770 105,846,280 66,090,810 52,620,660 47,232,500 44,489,830 42,019,500 39,666,260 35,560,000

0.66 % 0.57 0.33 0.22 0.17 0.15 0.14 0.13 0.12 0.11

Total

$828,301,720

2.60 %

Total Real Property Assessed Valuation

$31,867,254,470

- S20 -

Cleveland Metroparks Demographic and Economic Statistics December 31, 2013

Year

County Population (1)

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

1,263,154 1,265,111 1,270,294 1,280,122 1,275,709 1,283,925 1,295,958 1,314,241 1,335,317 1,351,009 1,363,888

MSA 1,761,898 1,779,827 1,766,669 1,775,884 1,783,918 1,783,918 1,794,211 1,812,162 1,830,011 1,842,749 1,848,348

Personal Income $33,981,368,908 33,917,625,910 33,361,731,322 33,353,412,000 33,353,411,805 32,464,043,625 33,344,999,340 32,421,011,229 31,936,776,689 31,750,062,509 30,686,116,112

AGE DISTRIBUTION (2) Number 75,390 77,687 85,049 91,225 77,601 158,330 163,903 198,103 87,255 72,258 94,856 71,287 32,335

Under 5 years 5 – 9 yrs 10 – 14 yrs 15 – 19 yrs 20 – 24 yrs 25 – 34 yrs 35 – 44 yrs 45 – 54 yrs 55 – 59 yrs 60 – 64 yrs 65 – 74 yrs 75 – 84 yrs 85 yrs and over TOTAL

1,285,279

Median age Males Females

Percentage 5.9% 6.0 6.7 7.1 6.0 12.3 12.8 15.4 6.8 5.6 7.4 5.5 2.5 100.0% 40 609,670 675,609

DISTRIBUTION OF FAMILIES BY INCOME BRACKET (Average 3.06 persons) (3) Income (2)

Number

$0 – 14,999 $15,000 – 24,999 $25,000 – 49,999 $50,000 – 99,999 $100,000 -199,999 OVER $200,000 TOTAL MEDIAN FAMILY INCOME

Percentage

$35,539 27,835 68,756 95,338 57,318 18,055

11.7% 9.2 22.7 31.5 19.4 6.0

$302,841

100.0%

$57,514

(continued) Sources: (1) Ohio Department of Development – The Metropolitan Statistical Area (MSA), as defined by the Department of Development, includes Lake, Geauga, Medina and Cuyahoga Counties Population totals for 2003 are estimates provided by the U.S. Census Bureau (2) U. S. Census Bureau, Census 2010 (3) U. S. Census Bureau, Census 2010

- S21 -

Per Capita Personal Income $26,902 26,810 26,263 26,055 26,145 25,285 25,730 24,669 23,917 23,501 22,499

Cleveland Metroparks Demographic and Economic Statistics (continued) December 31, 2013

Unemployment Rates (Last Ten Years)

Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Cuyahoga County 7.2% 8.3 8.0 8.6 9.0 7.1 6.1 5.5 5.9 6.3

Ohio 7.1% 6.7 8.1 9.6 10.9 7.6 5.8 5.5 5.9 5.5

United States 6.7% 7.9 8.5 9.4 10.0 7.1 4.8 4.6 4.9 5.5

Employment - Annual Average (Last Ten Years)

Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Total Employed 592,250 616,195 611,227 574,632 564,837 599,762 617,674 626,913 632,454 622,730

Total Unemployed 45,950 54,758 53,150 54,068 55,863 45,838 40,126 36,487 37,146 41,870

Source: Ohio Department of Job and Family Services

- S22 -

Total Civilian Labor Force 638,200 670,953 664,377 628,700 620,700 645,600 657,800 663,400 669,600 664,600

Cleveland Metroparks Principal Employers 2013 and 2004

2013 Nature of Business

Employer Cleveland Clinic Health System University Hospitals Health System U.S. Office of Personnel Management Giant Eagle Inc. Group Management Services, Inc. State of Ohio Progressive Corporation Cuyahoga County U.S. Postal Service Cleveland Metropolitan School District City of Cleveland

Health Care System Health Care System Federal Government Grocery Store Chain Professional Employer Organization State Government Insurance Provider County Government Postal Services Education Municipal Government

Employees 33,514 15,668 14,810 9,800 8,113 8,074 7,895 7,544 7,258 6,875 6,825

2004 Employer Cleveland Clinic Health System University Hospitals Health System Cleveland Municipal School District Cuyahoga County City of Cleveland Progressive Corporation KeyCorp Ford Motor Company U.S. Postal Service Metro Health Systems

Nature of Business Health Care System Health Care System Education County Government Municipal Government Insurance Provider Financial Services Automotive Postal Services Health Care System

Source: Crain's Cleveland Business Magazine

- S23 -

Employees 23,567 14,270 10,510 9,376 8,658 7,557 7,381 6,765 5,548 5,411

Cleveland Metroparks Full-Time Equivalent Metroparks Employees by Division Last Ten Years

Division

2013

2012

2011

2010

2009

Park Operations Zoo Golf Rangers Administration

289.6 254.4 104.4 84.7 110.9

213.4 250.1 107.6 83.2 186.2

222.4 258.7 123.1 85.9 170.6

222.4 252.1 104.0 85.8 153.3

223.2 248.6 104.9 87.0 151.2

Total

844.0

840.5

860.7

817.6

814.9

Percent Change

4.2%

(2.3%)

5.3%

Source: Cleveland Metroparks Payroll Department Method: A full-time equivalent (FTE) is one full calendar year of paid employment, or the equivalent of 2,088 hours (the number of available work hours in a year)

- S24 -

0.3%

(0.3%)

2008

2007

2006

2005

2004

224.8 253.9 102.1 87.3 149.3

223.5 253.6 102.6 87.2 150.1

223.7 248.9 104.8 86.8 151.3

220.0 244.5 102.9 85.5 149.7

216.9 237.0 93.8 85.0 147.6

817.4

817.0

815.5

802.6

780.3

0.0%

0.2%

1.6%

- S25 -

2.9%

0.1%

Cleveland Metroparks Operating Indicators Last Ten Years

Function/Program

2013

2012

2011

2010

2009

Affiliate Visitation

366,000

319,616

347,208

369,533

386,959

Water Safety Division Hinckley Dam Huntington Beach Ledge Lake pool Wallace Lake Edgewater Park (1)

63,277 184,368 29,332 29,828 209,013

69,597 211,145 42,337 18,804 NA

63,527 215,309 45,655 16,046 NA

51,922 270,318 44,127 38,152 NA

54,275 242,919 32,297 50,371 NA

The Chalet Public admissions Private rentals

37,868 19,054

30,127 15,477

31,652 15,185

39,429 13,298

31,059 14,937

Golf Services Golfers at 9 holes

330,956

364,235

274,596

323,741

351,532

7,752

13,420

8,324

8,301

10,064

Outdoor Education Walk ins Programs Institute of the Great Outdoors (IGO) Historical interpretation Nature tracks mobile education unit Youth outdoors

283,366 178,278 2,700 7,861 34,814 8,969

272,903 157,851 3,456 6,754 25,995 8,636

254,741 148,612 3,554 1,043 21,182 8,377

270,527 161,976 2,880 1,101 19,565 9,898

270,856 160,712 2,358 4,072 21,807 9,990

Ranger Department Programs Parades

57,674 386,500

20,424 100,000

5,846 102,885

5,901 103,050

2,868 202,118

Visitor Services Reserved group picnic areas Reserved fields (multi-purpose) Emerald Necklace Marina Other (special non-exclusive uses)

175,288 84,975 3,503 164,620

123,655 35,970 7,901 126,343

113,232 30,402 8,627 128,084

107,441 24,946 9,820 182,771

88,956 22,680 10,400 149,599

53,707

67,958

59,321

63,715

63,942

1,123,660 37,698 8,802

1,170,443 32,566 12,284

1,318,458 21,036 35,350

1,130,518 34,210 48,583

1,154,607 29,014 57,310

Natural Resources Fishing experiences and programs

Marketing Special Events Cleveland Metroparks Zoo Zoo/Rainforest Private events/rentals Education/outreach

Source: Cleveland Metroparks Marketing Department (1) The Metroparks began management of Edgewater Park in 2013.

- S26 -

2008

2007

2006

2005

2004

367,467

341,836

328,517

346,466

314,863

54,275 242,919 29,020 50,371 NA

54,275 242,918 28,045 50,371 NA

32,743 181,988 9,892 9,375 NA

32,743 181,988 9,892 9,375 NA

32,743 181,988 9,892 9,375 NA

29,482 14,440

26,476 14,413

21,941 18,368

22,272 20,534

30,602 20,740

344,325

355,384

346,171

335,089

364,020

14,742

5,880

2,516

4,952

2,350

246,724 152,944 2,929 8,950 17,584 9,810

227,002 183,030 3,599 15,615 20,652 9,935

241,032 158,993 5,044 16,307 30,800 9,635

251,815 135,017 9,106 10,600 32,708 8,207

295,754 158,970 6,021 16,077 32,318 8,302

3,424 154,193

3,339 115,929

3,063 116,881

6,969 105,050

14,650 2,900

97,229 33,905 11,977 187,440

101,156 22,465 14,202 170,654

104,289 24,510 10,043 152,432

104,153 33,165 9,761 110,805

102,825 48,448 8,869 105,397

62,538

47,594

34,498

29,739

37,537

1,162,850 32,865 67,170

1,185,972 32,040 55,867

1,156,459 36,118 39,693

1,081,331 28,207 30,749

1,230,239 43,280 36,844

- S27 -

Cleveland Metroparks Capital Assets Statistics by Function Last Ten Years

Function

Building Square Footage Administration Maintenance Ranger Zoo Golf

2013

2012

2011

2010

2009

39,961 773,699 49,726 396,544 172,881

29,746 738,231 48,449 396,544 172,881

29,489 709,540 48,449 358,342 122,764

29,408 707,143 48,449 334,065 110,394

29,408 703,219 49,505 327,052 109,194

Source: Cleveland Metroparks Department of Finance

- S28 -

2008

2007

29,408 659,154 45,557 323,769 108,795

29,408 647,695 47,648 338,032 103,326

2006

2005

2004

29,408 651,533 49,121 335,562 97,948

29,275 639,148 49,057 336,342 84,819

29,275 641,768 49,057 336,342 91,058

- S29 -

(This Page Intentionally Left Blank)

- S30 -

This page intentionally left blank.

CLEVELAND METROPOLITAN PARK DISTRICT CUYAHOGA COUNTY SINGLE AUDIT FOR THE YEAR ENDED DECEMBER 31, 2013

CLEVELAND METROPOLITAN PARK DISTRICT CUYAHOGA COUNTY TABLE OF CONTENTS TITLE

PAGE

Federal Awards Expenditures Schedule ....................................................................................................... 1 Notes to the Federal Awards Expenditures Schedule .................................................................................. 3 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required By Government Auditing Standards ............................. 5 Independent Auditor’s Report on Compliance with Requirements Applicable to each Major Federal Program and on Internal Control Over Compliance Required by OMB Circular A-133, and the Federal Awards Expenditures Schedule ....................................................................................... 7 Schedule of Findings ................................................................................................................................... 11

This page intentionally left blank.

CLEVELAND METROPOLITAN PARK DISTRICT CUYAHOGA COUNTY SCHEDULE OF FEDERAL AWARDS EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2013 FEDERAL GRANTOR Pass-Through Grantor Program Title

Pass Through Entity Number

Federal CFDA Number

Expenditures

RT11 (214)

20.219

$

U.S DEPARTMENT OF TRANSPORTATION Passed Through Ohio Department of Natural Resources Highway Planning and Construction Cluster: Big Creek Connector Trail

146,800

Total Highway Planning and Construction Cluster

146,800

Total Department of Transportation

146,800

U.S DEPARTMENT OF THE INTERIOR Direct Federal Assistance Program: Cuyahoga River Cooperative Weed Management Area Assistance

R6167110017

15.XXX

Total U.S. Department of the Interior

25,081 25,081

U.S. INSTITUTE OF MUSEUM & LIBRARY SERVICES Passed Through Cleveland Zoological Society Museums for America

MA-06-08-0349-08

45.301

Total U.S. Institute of Museum & Library Services

5,166 5,166

U.S DEPARTMENT OF JUSTICE Direct Federal Assistance Program: Community Oriented Policing Services (COPS) Vest Grant

N/A

16.000

Total U.S. Department of Justice

624 624

U.S DEPARTMENT OF HOMELAND SECURITY Passed through Ohio Department of Public Safety - Emergency Management Agency Federal Emergency Management Agency - Public Assistance (Presidentially Declared Disasters) Total U.S. Department of Homeland Security

DR-4098-OH

97.036

239,605 239,605

(Continued on the next page.)

1

CLEVELAND METROPOLITAN PARK DISTRICT CUYAHOGA COUNTY SCHEDULE OF FEDERAL AWARDS EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2013 FEDERAL GRANTOR Pass-Through Grantor Program Title

Pass Through Entity Number

CFDA Number

GL-00E00818-0 GL-00E00800-0

66.469 66.469

Expenditures

U.S ENVIRONMENTAL PROTECTION AGENCY Direct Federal Assistance Programs: Great Lakes Program: West Creek Ecosystem Restoration Project Invasive Plant Partnership Program

$

Total Great Lakes Program

213,273 168,411 381,684

Regional Wetland Program Development Grants: Regional Ecosystem Monitoring & Assessment Program Region 5 Wetland Program Development Wetlands Improvement Project

CD-00E00744-0 CD-00E00965-0 CD-00E70501-0

66.461 66.461 66.461

50,607 108,800 2,335

Total Regional Wetland Program Development Grants

161,742

Total U.S. Environmental Protection Agency

543,426

TOTAL FEDERAL AWARDS EXPENDITURES

$

See Notes to the Federal Awards Expenditures Schedule.

2

960,702

CLEVELAND METROPOLITAN PARK DISTRICT CUYAHOGA COUNTY NOTES TO THE FEDERAL AWARDS EXPENDITURES SCHEDULE FISCAL YEAR ENDED DECEMBER 31, 2013

NOTE A - SIGNIFICANT ACCOUNTING POLICIES The accompanying Federal Awards Expenditures Schedule (the Schedule) reports the Cleveland Metropolitan Park District’s (the District’s) federal award programs’ disbursements. The Schedule has been prepared on the cash basis of accounting.

NOTE B - MATCHING REQUIREMENTS Certain Federal programs require the District to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The District has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.

CFDA – Catalog of Federal Domestic Assistance.

N/A – Not applicable.

3

This page intentionally left blank.

4

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS REQUIRED BY GOVERNMENT AUDITING STANDARDS

Cleveland Metropolitan Park District Cuyahoga County 4101 Fulton Parkway Cleveland, Ohio 44144 To the Board of Park Commissioners: We have audited, in accordance with auditing standards generally accepted in the United States and the Comptroller General of the United States’ Government Auditing Standards, the financial statements of the governmental activities, the discretely presented component unit, the major fund, and the aggregate remaining fund information of Cleveland Metropolitan Park District, Cuyahoga County, (the District) as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements and have issued our report thereon dated June 27, 2014. Our report refers to other auditors who audited the financial statements of the Cleveland Zoological Society, as described in our report on the District’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that those auditors separately reported.

Internal Control Over Financial Reporting As part of our financial statement audit, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures appropriate in the circumstances to the extent necessary to support our opinions on the financial statements, but not to the extent necessary to opine on the effectiveness of the District’s internal control. Accordingly, we have not opined on it.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, when performing their assigned functions, to prevent, or detect and timely correct misstatements. A material weakness is a deficiency, or combination of internal control deficiencies resulting in a reasonable possibility that internal control will not prevent or detect and timely correct a material misstatement of the District’s financial statements. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all internal control deficiencies that might be material weaknesses or significant deficiencies. Given these limitations, we did not identify any deficiencies in internal control that we consider material weaknesses. However, unidentified material weaknesses may exist.

Lausche Building, 615 Superior Ave., NW, Twelfth Floor, Cleveland, Ohio 44113-1801 Phone: 216-787-3665 or 800-626-2297 Fax: 216-787-3361 www.ohioauditor.gov

5

Cleveland Metropolitan Park District Cuyahoga County Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards Page 2 Compliance and Other Matters As part of reasonably assuring whether the District’s financial statements are free of material misstatement, we tested its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could directly and materially affect the determination of financial statement amounts. However, opining on compliance with those provisions was not an objective of our audit and accordingly, we do not express an opinion. The results of our tests disclosed no instances of noncompliance or other matters we must report under Government Auditing Standards.

Purpose of this Report This report only describes the scope of our internal control and compliance testing and our testing results, and does not opine on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed under Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Dave Yost Auditor of State Columbus, Ohio June 27, 2014

6

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133, AND THE FEDERAL AWARDS EXPENDITURES SCHEDULE

Cleveland Metropolitan Park District Cuyahoga County 4101 Fulton Parkway Cleveland, Ohio 44144 To the Board of Park Commissioners: Report on Compliance for Each Major Federal Program We have audited the Cleveland Metropolitan Park District’s (the District) compliance with the applicable requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133, Compliance Supplement that could directly and materially affect each of the Cleveland Metropolitan Park District’s major federal programs for the year ended December 31, 2013. The Summary of Auditor’s Results in the accompanying schedule of findings identifies the District’s major federal programs.

Management’s Responsibility The District’s Management is responsible for complying with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.

Auditor’s Responsibility Our responsibility is to opine on the District’s compliance for each of the District’s major federal programs based on our audit of the applicable compliance requirements referred to above. Our compliance audit followed auditing standards generally accepted in the United States of America; the standards for financial audits included in the Comptroller General of the United States’ Government Auditing Standards; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. These standards and OMB Circular A-133 require us to plan and perform the audit to reasonably assure whether noncompliance with the applicable compliance requirements referred to above that could directly and materially affect a major federal program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe our audit provides a reasonable basis for our compliance opinion on the District’s major programs. However, our audit does not provide a legal determination of the District’s compliance.

Lausche Building, 615 Superior Ave., NW, Twelfth Floor, Cleveland, Ohio 44113-1801 Phone: 216-787-3665 or 800-626-2297 Fax: 216-787-3361 www.ohioauditor.gov

7

Cleveland Metropolitan Park District Cuyahoga County Independent Auditor’s Report on Compliance with Requirements Applicable to Each Major Federal Program and on Internal Control Over Compliance Required by OMB Circular A-133, and the Federal Awards Expenditures Schedule Page 2 Opinion on Each Major Federal Program In our opinion, the Cleveland Metropolitan Park District complied, in all material respects with the compliance requirements referred to above that could directly and materially affect each of its major federal programs for the year ended December 31, 2013.

Report on Internal Control Over Compliance The District’s management is responsible for establishing and maintaining effective internal control over compliance with the applicable compliance requirements referred to above. In planning and performing our compliance audit, we considered the District’s internal control over compliance with the applicable requirements that could directly and materially affect a major federal program, to determine our auditing procedures appropriate for opining on each major federal program’s compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not to the extent needed to opine on the effectiveness of internal control over compliance. Accordingly, we have not opined on the effectiveness of the District’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, when performing their assigned functions, to prevent, or to timely detect and correct, noncompliance with a federal program’s applicable compliance requirement. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a federal program compliance requirement will not be prevented, or timely detected and corrected. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with federal program’s applicable compliance requirement that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

This report only describes the scope of our internal control compliance tests and the results of this testing based on OMB Circular A-133 requirements. Accordingly, this report is not suitable for any other purpose.

8

Cleveland Metropolitan Park District Cuyahoga County Independent Auditor’s Report on Compliance with Requirements Applicable to Each Major Federal Program and on Internal Control Over Compliance Required by OMB Circular A-133, and the Federal Awards Expenditures Schedule Page 3 Report on Federal Awards Expenditures Schedule Required by OMB Circular A-133 We have also audited the financial statements of the governmental activities, the discretely-presented component unit, the major fund and the aggregate remaining fund information of Cleveland Metropolitan Park District (the District) as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements. We issued our unmodified report thereon dated June 27, 2014. Our report refers to other auditors who audited the financial statements of the Cleveland Zoological Society, as described in our report on the District’s financial statements. We conducted our audit to opine on the Districts’ basic financial statements. The accompanying federal awards expenditures schedule presents additional analysis required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and is not a required part of the basic financial statements. The schedule is management’s responsibility, and was derived from and relates directly to the underlying accounting and other records management used to prepare the basic financial statements. We subjected this schedule to the auditing procedures we applied to the basic financial statements. We also applied certain additional procedures, including comparing and reconciling this schedule directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, in accordance with auditing standards generally accepted in the United States of America. In our opinion, this schedule is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

Dave Yost Auditor of State Columbus, Ohio June 27, 2014

9

This page intentionally left blank.

10

CLEVELAND METROPOLITAN PARK DISTRICT CUYAHOGA COUNTY SCHEDULE OF FINDINGS OMB CIRCULAR A -133 § .505 DECEMBER 31, 2013

1. SUMMARY OF AUDITOR’S RESULTS (d)(1)(i)

Type of Financial Statement Opinion

Unmodified

(d)(1)(ii)

Were there any material control weaknesses reported at the financial statement level (GAGAS)?

No

(d)(1)(ii)

Were there any significant deficiencies in internal control reported at the financial statement level (GAGAS)?

No

(d)(1)(iii)

Was there any reported material noncompliance at the financial statement level (GAGAS)?

No

(d)(1)(iv)

Were there any material internal control weaknesses reported for major federal programs?

No

(d)(1)(iv)

Were there any significant deficiencies in internal control reported for major federal programs?

No

(d)(1)(v)

Type of Major Programs’ Compliance Opinion

Unmodified

(d)(1)(vi)

Are there any reportable findings under § .510(a)?

No

(d)(1)(vii)

Major Programs (list):

CFDA# 66.469 - Great Lakes Program CFDA# 97.036 - FEMA Public Assistance (Presidentially Declared Disasters)

(d)(1)(viii)

Dollar Threshold: Type A\B Programs

Type A: > $ 300,000 Type B: all others

(d)(1)(ix)

Low Risk Auditee?

No

2. FINDINGS RELATED TO THE FINANCIAL STATEMENTS REQUIRED TO BE REPORTED IN ACCORDANCE WITH GAGAS None 3. FINDINGS FOR FEDERAL AWARDS None

11

This page intentionally left blank.

CLEVELAND METROPOLITAN PARK DISTRICT CUYAHOGA COUNTY

CLERK’S CERTIFICATION This is a true and correct copy of the report which is required to be filed in the Office of the Auditor of State pursuant to Section 117.26, Revised Code, and which is filed in Columbus, Ohio.

CLERK OF THE BUREAU CERTIFIED JULY 10, 2014

88 East Broad Street, Fourth Floor, Columbus, Ohio 43215‐3506 Phone: 614‐466‐4514 or 800‐282‐0370 Fax: 614‐466‐4490 www.ohioauditor.gov